The dividends remitted by government-owned and -controlled corporations (GOCCs) so far this year have exceeded P50 billion, the country’s finance chief said.
Carlos Dominguez, Department of Finance (DOF) secretary, told reporters via Viber over the weekend that state-run and -controlled firms have remitted P51.7 billion year-to-date.
The said amount is around a third of the P156.97 billion record-high amount remitted by GOCCs in 2020.
Earlier this month, Dominguez said t the government has enough revenues to fund the financial assistance for Metro Manila residents affected by the strict lockdown, as excess funds can be tapped from dividends remitted by GOCCs. The government however dipped into the 2020 budget savings for its cash aid.
The Department of Budget and Management previously said that it released P10.894 billion to cover the financial assistance of affected individuals and households in the National Capital Region, which was placed under enhanced community quarantine from August 6 to 20, 2021.
The agency said that the total funding requirement was charged from the certified savings from the 2020 continuing appropriations.
Dominguez was also asked this weekend if the GOCC dividends advanced to the national government will be tapped should there be a need for more cash aid, to which he said: “we will review the situation if and when the need arises.”
In April, the DOF proposed to hike the mandated dividend remittances of GOCCs to the national treasury, to raise more funds for the country’s economic recovery amid the COVID-19 pandemic.
According to the DOF’s proposed amendments to the Dividend Law, all GOCCs shall declare and remit at least 75 percent of their annual net earnings, instead of 50 percent.
Also, the dividends to be remitted to the national government are proposed to be only in cash, with the option that it be in the form of stocks or property to be removed.
The proposal also mentions that additional dividends may be collected out of accumulated earnings.
The DOF’s proposed amendments to the Dividend Law cover net earnings of GOCCs starting 2020. – Angela Celis
