DBM: GOCC earnings to shore up key budget needs

THE government is eyeing to use the P27.89 billion in dividends and other remittances turned over by 38 government-owned or -controlled corporations (GOCCs) to the national government to support public expenditures, including those for the rehabilitation of typhoon-hit areas across the country. 

Department of Budget and Management (DBM) Secretary Florencio B. Abad in a statement said that the total earnings turned over by GOCCs to President Benigno S. Aquino III—an amount significantly higher than the P10-billion target for this year—will also be used to fund more infrastructure projects and social programs under the unprogrammed fund of the 2013 national budget. 

“The GOCC earnings will play a large role in supporting many of our more urgent expenditure needs, including those for rehabilitating areas struck by Typhoon Pablo in 2012, as well as other unprogrammed expenditures and budgetary items. Additionally, the dividends will help create broader fiscal space to accommodate our growing budget requirements, especially for priority programs that will advance the Administration’s growth agenda,” Abad said. 

The top five corporations with the biggest remittances are the Philippine Amusement and Gaming Corporation (PAGCOR) with P7.2 billion, the Land Bank of the Philippines (LANDBANK) with P6.2 billion, the Development Bank of the Philippines (DBP) with P3.2 billion, the Bases Conversion Development Authority (BCDA) with P2.3 billion, and the Power Sector Assets and Liabilities Management Corporation (PSALM) with P2.0 billion. 

Abad also noted the impact of accountability and transparency measures on the performance of the country’s GOCCs since the passage of Republic Act 10149 or the GOCC Governance Act two years ago. 

“The transparency and accountability reforms adopted by our GOCCs enabled them to become more productive and efficient, a development that can only bring us better news for the country’s economic horizon. With the fiscal gains we posted in the first half of President Aquino’s term, the Philippines is now poised to sustain its development momentum and ensure that further economic expansion in the country will benefit all Filipinos,” Abad said. (DBM)