Finance Secretary Ralph G. Recto has successfully collected PHP 88.6 billion from 47 Government-Owned- or Controlled Corporations (GOCCs) as of May 6, 2024––eleven times higher than 2023 and a major source of non-tax revenues for the national government to fund President Ferdinand R. Marcos, Jr.’s priority programs without the need to impose new taxes on the people.
To recognize the significant contributions of the GOCCs, Secretary Recto led the GOCC Day which was graced by President Ferdinand R. Marcos, Jr. to acknowledge the top-remitting GOCCs that have exercised good corporate governance and significantly contributed dividends to the national government.
“These dividends form a major source of non-tax revenues for the government, making possible our goal of raising funds without the need to impose additional taxes on our people,” he said in his welcome remarks during the GOCC Day on May 6, 2024 at the Philippine International Convention Center (PICC).
“They help us hold down deficits and continue funding the President’s priority programs for the welfare of all Filipinos without having to borrow more,” he added.
As a result of these dividend contributions, non-tax revenues have been on the rise and have reached PHP 206.4 billion as of the end of April, demonstrating an impressive 85% increase from the same period in 2023.
They continue to grow alongside the government’s tax collections.
As of the end of April, the Bureau of Internal Revenue (BIR) has already collected PHP 912.9 billion, a 16.3% increase from last the same period last year.
On the other hand, the Bureau of Customs (BOC) collections grew by 6.3% during the said period, reaching PHP 295.2 billion.
“We expect both our tax and non-tax revenues to dramatically increase over the coming months as we intensify our revenue mobilization efforts,” the Finance Chief said.
The President led the ceremonial presentation of certificates of recognition to the GOCC heads, alongside Executive Secretary Lucas Bersamin and Secretary Recto.
The Finance Chief praised the GOCCs for not just remitting their contributions on time but many of them have also increased their dividend payments to the national government from the minimum of 50% to 75% to further accelerate the nation’s growth.
This drove total GOCC remittances to PHP 88.6 billion as of May 6—eleven times bigger than roughly PHP 8 billion recorded in the same period in 2023.
The top GOCCs that contributed at least PHP 1 billion were the Land Bank of the Philippines (PHP 32. 1 billion); the Philippine Deposit Insurance Corporation (PHP 10.7 billion); the Bangko Sentral ng Pilipinas (PHP 9.2 billion); the Philippine Ports Authority (PHP 5.0 billion); the Philippine Amusement and Gaming Corporation (PHP 4.6 billion); the Manila International Airport Authority (PHP 3.5 billion); the Subic Bay Metropolitan Authority (PHP 3.0 billion); the Philippine Charity Sweepstakes Office (PHP 2.7 billion); the Philippine National Oil Company (PHP 2.6 billion); the National Transmission Corporation (PHP 2.2 billion); and the PNOC Exploration Corporation (PHP 2.0 billion).
Also belonging to the billionaires club were the Clark Development Corporation (PHP 1.8 billion); the Philippine Economic Zone Authority (PHP 1.4 billion); the Philippine Guarantee Corporation (PHP 1.1 billion); the Bases Conversion and Development Authority (PHP 1.1 billion); the Philippine Reclamation Authority (PHP 1.0 billion); and the Metropolitan Waterworks and Sewerage System (PHP 1.0 billion).
Secretary Recto anticipates total dividend remittances to reach PHP 100.0 billion by the end of 2024.
“Notwithstanding the diversity of your missions, every peso of your contribution will ultimately go back to benefit every Filipino,” he told GOCCs.
The Finance Chief explained that the GOCC’s PHP 100 billion contribution by year-end will significantly help, for instance, build 1,600 kilometers of farm-to-market roads; construct more than 8,000 new public classrooms; irrigate an extra 25,000 hectares of farmland; and extend a lifeline to more than 208,000 kidney 52,000 cancer patients with a month’s worth of free dialysis and chemotherapy treatments.
“All of these can be achieved by your generous contribution of 100 billion pesos – big enough to transform the lives of our people and secure their future. But we can do so much more,” he said.
Secretary Recto expressed his gratitude to the officers and staff of GOCCs as well as the Secretaries overseeing them for their support and cooperation.
He also commended the Corporate Affairs Group of the Department of Finance (DOF), which oversees the government corporate sector, for ensuring that GOCCs are fiscally responsible partners of the government.
He also assured GOCCs of the DOF’s commitment to manage their contributions judiciously and with utmost transparency and accountability.
In turn, Secretary Recto urged GOCCs to continue striving for efficiency and to hold to the highest standards of corporate governance.
“We will not leave any room for incompetence and corruption,” he stressed.
Meanwhile, President Marcos, Jr. likewise assured the public that the dividends would be invested back into the economy in the form of growth-inducing activities that would significantly uplift the lives of every Filipino.
“[L]et me assure you that they will be carefully spent like the precious taxes that come from the sweat of their brow. It will be plowed back to them through projects and programs that will improve their lives today and also create a better tomorrow for our children. It will be invested back to growth-inducing activities that create jobs and harness opportunities. In the end, these dividends will yield more dividends, unleashing a virtuous cycle that lifts up those we serve to a higher standard of living,” the President said.
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