State-run firms remit P316 million in dividends to government in 2009

MANILA, Philippines - State-run firms remitted P316 million in dividends to the National Government in the first quarter of the year, more than double the amount remitted in the same period last year.

According to the latest data from the Department of Finance (DOF), the P316 million worth of dividends remitted from January to March were 177 percent higher than the P114 million worth of dividends remitted by state-owned firms in the same period last year.

Of the P316 million, the Philippine Ports Authority (PPA) remitted P200 million while the Mactan airport remitted P116 million, the DOF said.

This was the first time the Mactan airport remitted dividends to the National Government, data further showed. Dividends form part of the National Government’s total revenues.

Under RA 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 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.

A Finance official said the DOF has asked GOCCs and GFIs to remit more than the mandatory 50 percent of their yearly income to help raise funds to plug the government’s widening budget deficit.

In the first quarter of the year, the National Government incurred a budget deficit of P134.2 billion which was above the P110.9-billion target for the period.

The deficit overshot the ceiling mainly because of setbacks in the privatization of state-owned assets and higher-than-expected expenditures.

The P134.2-billion deficit in the first quarter was also 12.1 percent above the P119.7-billion deficit incurred in the same period last year.

Total revenues during the quarter amounted to P265.8 billion or slightly below the programmed collection of P266.3 billion while expenditures reached P400 billion or P22.8 billion above the programmed amount of P377.2 billion.

Of the revenues, the Bureau of Internal Revenue (BIR) collected P173.9 billion, exceeding its goal by P16.2 billion while the Bureau of Customs (BOC) collected P60.6 billion, higher than its target by P5.4 billion.

The Bureau of the Treasury, meanwhile, registered an income of P13.9 billion or lower than program by P2.9 billion while revenues from other offices which included privatization amounted to P17.4 billion or short by P19.1 billion against the program.

In March alone, the budget deficit amounted to P63.9 billion or 21.3 percent higher than the deficit incurred in the same month last year.

Total revenues for the month amounted to P96.9 billion or higher by 27.6 percent compared to March last year while expenditures during the month amounted to P160.7 billion or an increase of 25 percent compared to the same month last year.