MANILA, Philippines—Dividends remitted by state-run firms to the nationwide treasury in 2021 reached P57.6 billion, virtually a tenth larger than the P52.6 billion collected in 2019 with out the additional strain to finance pandemic response.
Money dividends collected from government-owned and/or -controlled firms (GOCCs) in 2020 jumped to a document P135.1 billion because the nationwide authorities ordered advances to finance the battle towards COVID-19. Three-fourths of 2020’s web GOCC dividends or P119.1-billion value was spent on dole outs to susceptible households below the social amelioration program (SAP) on the peak of essentially the most stringent COVID-19 lockdown. This yr, the federal government would once more squeeze GOCCs so dividend windfalls may very well be spent on money assist for sectors badly hit by costly oil.
The 2021 dividend determine, primarily based on GOCCs’ 2020 incomes, launched by the Division of Finance (DOF) on Monday (March 28) was web of the dividends foregone as the federal government allowed state-run lenders Improvement Financial institution of the Philippines (DBP) and Land Financial institution of the Philippines (Landbank) to maintain their supposed contributions to beef-up their capitalization. With out the aid prolonged to DBP and Landbank, final yr’s GOCC dividends totaled P84.7 billion, greater than a fifth bigger than P69.2 billion in 2019 however beneath the P156.9 billion in 2020.
“The excessive stage of compliance by GOCCs to Republic Act (RA) No. 7656, or the dividends regulation, was the results of the DOF’s persistent efforts to make sure that even state-run companies with dividend deficiencies and arrears are capable of remit both by means of staggered remittance preparations or different cost choices which may be warranted,” Assistant Finance Secretary Soledad Emilia Cruz stated in a press release.
RA 7656 mandates all state-run corporations to declare and remit at the least half of their yearly incomes to the nationwide treasury as dividends. The DOF, which oversees GOCCs, has been pushing for a invoice pending in Congress to hike necessary dividends to at the least 75 % of annual earnings.
The Duterte administration collected a median of P68.7 billion in dividends yearly from 2016 to 2021, over twice increased than the annual common of P27.5 billion throughout the previous administration, the DOF stated.
It helped that the net monetary reporting portal renamed into GOCCs Liabilities and Monitoring System (GLAMS) — previously generally known as GOCC Debt Reporting and Monitoring System (GDRAMS) when beforehand overseen by the the Governance Fee for GOCCs (GCG) — was transferred to DOF supervision in mid-2021, it added.
The DOF’s company affairs group—headed by Finance Undersecretary Antonette Tionko—relaunched GLAMS with its enhanced options in August 2021.
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