GOCC remittances to fund infra projects

Posted at 06/05/13 8:15 AM

MANILA, Philippines - The Department of Budget and Management said yesterday it would use the P27.89 billion remitted by 38 government owned-or controlled corporations for more infrastructure projects including the rehabilitation of typhoon-hit areas across the country.

“The GOCC earnings will play a large role in supporting many of our more urgent expenditure needs, including those for rehabilitating areas struck by typhoon Pablo in 2012, as well as other unprogrammed expenditures and budgetary items,” said Budget Secretary Florencio B. Abad.

The amount is significantly higher than the P10-billion target for this year.

Abad said the dividends would also help create broader fiscal space to accommodate the government’s growing budget requirements, especially for priority programs that will advance the Aquino administration’s growth agenda.

The top five corporations with the biggest remittances are the Philippine Amusement and Gaming Corp. (PAGCOR) with P7.2 billion, the Land Bank of the Philippines (Landbank) with P6.2 billion, the Development Bank of the Philippines (P3.2 billion), Bases Conversion Development Authority (P2.3 billion), and the Power Sector Assets and Liabilities Management Corp. (P2 billion).

Abad likewise noted the impact of accountability and transparency measures on the performance of the country’s GOCCs since the passage of RA10149 or the GOCC Governance Act two years ago.

“The transparency and accountability reforms adopted by our GOCCs enabled them to become more productive and efficient, a development that can only bring us better news for the country’s economic horizon. With the fiscal gains we posted in the first half of President Aquino’s term, the Philippines is now poised to sustain its development momentum and ensure that further economic expansion in the country will benefit all Filipinos,” Abad said.