GOCCs remit P58 billion to government in 2021

MANILA, Philippines — Government-owned and controlled corporations (GOCCs) remitted P58 billion in dividends to state coffers last year, beating their pre-pandemic remittance of P53 billion, the Department of Finance (DOF) reported yesterday.

Finance Assistant Secretary Emilia Cruz said dividends remitted by GOCCs to the government went up under the Duterte administration due to the DOF’s efforts to boost the government’s total collections. A law requires state-owned firms to transfer at least 50 percent of their annual net income to the government either as cash, stock or property dividends.

Cruz said the DOF mandated all GOCCs with deficiencies to fulfill their backlogs either through staggered remittances or other options as may be warranted.

For the remaining term of the Duterte administration, Cruz said the government hopes to collect P32 billion in dividends from GOCCs.

Cruz also attributed the increase in GOCC dividends to the eventual compliance of government insurers to the Philippine Financial Reporting Standards (PFRS) 4. Under the PFRS 4, insurers are required to include in their liabilities actual and future claims of their members.

To improve GOCC activities, the DOF in 2021 evaluated the impact of decoupling of functions of the Philippine Amusement and Gaming Corp. and assessed the borrowing requirements of the Power Sector Assets and Liabilities Management Corp.