DOF cuts privatization goal to P50 billion

MANILA, Philippines — The Department of Finance (DOF) has cut by half its privatization goal this year to P50 billion as part of efforts to generate revenues and widen the limited fiscal space without raising new taxes.

In his speech during the China Banking Corp. economic briefing late Monday evening, Finance Secretary Ralph Recto said the government is putting idle public assets to productive use as part of its strategic approach to revenue generation.

“This year, we target to raise about P50 billion in privatization proceeds to fund priority programs – not by taxing our people more, but by inviting you to do what you do best: to innovate, create and operate,” Recto said.

The amount is about 50 percent lower than the original target of P101.02 billion under this year’s revenue program.

Recto has yet to respond when asked for further details on the lower expected proceeds from the sale of government assets.

Nonetheless, Recto’s latest projection is much closer to the conservative estimate of DOF’s Privatization and Partnerships Group.

Last month, The STAR reported that the most realistic privatization proceeds could yield just nearly P20 billion in revenues this year, according to Finance Undersecretary Catherine Fong.

Even with the reduced target, this year’s privatization revenue would still be a significant jump from the 2024 haul of just P4 billion.

Further, the Finance chief said the Privatization Council has released harmonized guidelines to ensure that privatization is more efficient, transparent and inclusive.

“We are offering a range of valuable assets for you, including the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna,” Recto said.

Apart from the CBK complex, state assets that were listed for disposal include the Food Terminal Inc., Philippine National Construction Corp., Financial Center Area, Ecology Villages, Mile Long Complex, National Housing Authority-Caloocan property, Fil-Eastern Woods Industries Inc., Pioneer Glass Manufacturing Corp. and Mindanao Progress Corp.

Also included are the Office of the Ombudsman properties in Laguna, Baguio and Batangas; Technology Resources Corp.; Al-Amanah Islamic Investment Bank of the Philippines; Sta. Clara Lumber Co. Inc. and Peninsula Development Bank.

These are on top of 28,000 real estate titles in varying sizes, which are also up for sale.