Total actual dividend contributions remitted by 53 government-owned and – controlled corporations (GOCCs) to the Department of Finance (DOF) as of July 1 have already reached another record-high of P61.3 billion, even breaching the milestone it reached last year at P51.24 billion.
Eight GOCCs contributed at least P1 billion in cash dividend remittances while the DOF has allowed Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) to retain dividends amounting to P15.6 billion due to the national government to boost their capital requirements.
Dividends are vital for the government to help it offset the subsidies it pays out GOCCs performing crucial social missions.
Finance Secretary Carlos G. Dominguez III said the dividends collected will go a long way in helping them hold down deficits and continue funding infrastructure and social programs of President Duterte.
“The 2019 dividend collection will help provide funding for the pensions of our uniformed personnel. They also help augment funding for the Rice Competitiveness Enhancement Fund created by the Rice Tariffication law,” Dominguez said in a speech during the 2019 GOCC Day in Malacañang on Wednesday.
The top eight dividend contributors for the period are the Philippine Amusement and Gaming Corp. with P16.17 billion followed by the Philippine Deposit Insurance Corporation with P4.58 billion, Bangko Sentral ng Pilipinas with P4 billion and Philippine Ports Authority with P3.52 billion.
This was followed by the Civil Aviation Authority of the Philippines with P3.51 billion, Manila International Airport Authority with P3.42 billion; Land Bank of the Philippines with P1.96 billion and the National Power Corporation with P1.44 billion.
According to the DOF, 56 GOCCs remitted dividends amounting to P51.24 billion in 2018. This represents a 41-percent increase from the 2017’s P36.46 billion.
Eight GOCCs also contributed at least P1 billion in cash dividend remittances last year. The DOF has also allowed the LandBank and the DBP to retain its dividend contributions of P3.24 billion and P7.82 billion, respectively to boost their capital requirements.
An efficient and strict monitoring system has been put in place by the DOF to ensure that GOCCs are able to remit the correct amounts to the National Treasury and maximize efficient use of its fiscal and financial resources.
GOCCs are required to declare and remit at least half of their net earnings as dividends to the national government, under Republic Act (RA) 7656 or the GOCCs dividends law.