GOCC dividends seen topping 2024 collections – BusinessWorld Online
STATE-RUN FIRMS remitted P76 billion worth of dividends to the Treasury as of May, with the Department of Finance (DoF) expecting the final amount this year to exceed the 2024 total of P138.46 billion.
“The amount is expected to exceed… the level in 2024,” the DoF said in a statement on Wednesday.
The DoF said dividend collections were from 50 government-owned or -controlled corporations (GOCCs), with around 13 firms contributing at least P1 billion each.
Citing preliminary data, the DoF said the top contributors were the Land Bank of the Philippines (P26 billion), the Philippine Amusement and Gaming Corp. (P12.68 billion), the Philippine Deposit Insurance Corp. (P10.13 billion), and the Philippine Ports Authority (P5.20 billion).
This was followed by the Manila International Airport Authority (P3.32 billion), the Philippine National Oil Co. (P2.43 billion), the Bases Conversion and Development Authority (P2.04 billion), the Philippine Charity Sweepstakes Office (P1.77 billion), the Subic Bay Metropolitan Authority (P1.47 billion), and the Maharlika Investment Corp. (P1.45 billion).
“These nontax revenues allow us to support the government’s expenditure program for the year, enabling the DoF to stay on track with its fiscal program and mobilize funds for our priority programs and projects,” Finance Secretary Ralph G. Recto said.
In order to boost nontax revenue, the DoF earlier requested GOCCs to increase the share of its net earnings that goes to the National Government to 75%.
This was higher from the “at least 50%” required by Republic Act No. 7656 or the Dividend Law.
In March, nontax revenue declined 69.36% to P19.6 billion, bringing the total to P66.7 billion in the first quarter. — Aubrey Rose A. Inosante
