Dividends remitted by state-run firms down to P5.41B in Jan-Oct
Iris C. Gonzales
Philippine Star
Dividends remitted by state-run firms to the National Government (NG) declined to P5.41 billion from January to October this year, a P3.46 billion decline from the P8.87 billion recorded in the same period last year, latest data from the Department of Finance (DOF) showed.
Finance Undersecretary Jeremias Paul Jr., however, stressed that last year’s figures were larger than expected because the government accelerated its collections.
“We will try to increase it. Some corporations have indicated that they would be able to provide more than 50 percent of dividends,” he said as he noted that the government wants to boost dividends collected from state companies.
President Arroyo has instructed government agencies to boost public spending as a means to cushion the country from the negative impact of the global economic slowdown.
Under Republic Act 7656 or the Dividends Law of 1994, government owned and controlled corporations (GOCCs) and government financial institutions (GFIs) are required to remit half or 50 percent of the income they earned in each fiscal year to the National Government. The remittance should be in the form of cash or in real estate properties with clean titles.
Paul said the major contributors of dividends to state coffers during the period include the Philippine Ports Authorities with P1.1 billion; the Development Bank of the Philippines, P1 billion; the Philippine National Oil Co. (PNOC), P790 million; the Manila International Airport Authority, P680 million; and the Land Bank of the Philippines, P440 million.
Despite the decline in dividends, the latest figure is already above the programmed dividends for the full year of P4 billion.
In 2006, dividends from GOCCs and GFIs reached a total P16.25 billion or almost three times the P5.66 billion recorded in 2005.
Dividends form part of the National Government’s total revenues. From January to September, total revenues of the National Government reached P879.920 billion, of which non-tax revenues amounted to P90.411 billion and tax revenues, P789.403 billion.
The government has programmed to raise a total of P1.250 trillion in revenues this year.
It has programmed to keep the budget deficit at P75 billion by yearend.
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