DOF collects higher dividends in 2023

The Department of Finance (DOF)’s Privatization and Corporate Affairs Group (PCAG) has collected a total of PHP 99.98 billion in dividends from Government-Owned or -Controlled Corporations (GOCCs) in 2023, exceeding its collections of PHP 68.34 billion in 2022 by 46 percent.

“The increased dividend collection is a result of fiscal discipline that the DOF continues to instill in GOCCs. These dividends will help manage our deficit and will be used to support the country’s development needs. Rest assured, the DOF will remain steadfast in its commitment to strictly monitor the performance of our GOCCs, ensuring that they are well-run and are operating within the bounds of national development policies and programs,” Finance Secretary and Governance Commission for GOCCs (GCG) member Benjamin E. Diokno said.

Republic Act (RA) No. 7656 or the Dividends Law of 1994 mandates all GOCCs to declare and remit at least 50 percent of their annual net earnings to the national government.

A total of 51 GOCCs remitted dividends to the National Treasury as of December 31, 2023.

The Bangko Sentral ng Pilipinas (BSP) emerged as the top dividend contributor in 2023 with PHP 55.61 billion.

The other top dividend contributors were the Philippine Deposit Insurance Corporation (PDIC) with PHP 14.05 billion, the Philippine Amusement and Gaming Corporation (PAGCOR) with PHP 6.96 billion, the Philippine Ports Authority (PPA) with PHP 4.44 billion, the Power Sector Assets & Liabilities Management Corporation (PSALM) with PHP 3.15 billion, and the Philippine Charity Sweepstakes Office (PCSO) with PHP 2.67 billion.

The subsequent top dividend contributors were the Philippine National Oil Company (PNOC) with PHP 1.68 billion, the Subic Bay Metropolitan Authority (SBMA) with PHP 1.52 billion, the National Transmission Corporation (TransCo) with PHP 1.48 billion, the Philippine Reclamation Authority (PRA) with PHP 1.35 billion, and the Clark Development Corporation (CDC) with PHP 1.21 billion.

The dividends have been a major source of non-tax revenues to fund the accelerated implementation of programs on infrastructure and various social and economic programs of the government.