The Department of Finance (DOF) said the fiscal discipline it continues to impose on government-owned or controlled corporations (GOCCs) has yielded P57.55 billion in actual dividend remittances in 2021.
Finance Secretary Carlos Dominguez III said this this is 9.4% higher than the 2019 pre-pandemic collection of P52.59 billion. These 2021 remittances exclude the dividends from the Land Bank of the Philippines and Development Bank of the Philippines, which retained their dividend contributions to continue boosting their capital requirements. The figures were based on the report of the DOF’s Corporate Affairs Group.
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% higher than 2019’s P69.17 billion.
DOF Asst, Secretary Soledad Emilia Cruz said the high level of compliance by GOCCs to RA 7656 was the result of their agency’s persistent efforts to ensure that even state-run firms with dividend deficiencies and arrears are able to remit either through staggered remittance arrangements, or other payment options warranted.
Under RA 7656, GOCCs are required to remit at least 50% of their net earnings to the national government.