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October 06, 2022

State-run firms remit 2021 dividends worth P57.55B

The dividend contribution of the various state enterprises in 2021 grew by more than nine percent to P57.55 billion, the Department of Finance said on Monday.

The 9.4 percent expansion in government owned or controlled corporation (GOCC) contribution to the national coffers reflect the fiscal discipline imposed on the public entities during the period and compares against dividends of only P52.59 billion in 2020.

According to Finance Secretary Carlos G. Dominguez, the foregone remittance collection from both the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines which retained their earnings to boost their respective capital requirements during the period, have not been counted.

“Inclusive of the dividend relief granted to select GOCCs, including LANDBANK and DBP, the total dividend collections for 2021 amount to P84.72 billion, which is 22.5 percent higher than 2019’s P69.17 billion,” Dominguez noted.

The dividend collection from July 2016 to December 2021 under President Duterte, including dividend relief, averaged P68.7 billion a year or more than double the level of the past administration from July 2010 to June 2016 when it averaged only P27.5 billion, he said.

The law or Republic Act 7656 compel state-run firms the remittance of 50 percent of earnings as dividends and that those firms with dividend deficiencies and arrears must remit either in staggered or other payment options that may be warranted.

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