GOCC dividends reach record high in July —DOF

Dividends remitted by government-owned and -controlled corporations (GOCCs) grew to a record high of P61.3 billion as of July this year, the Department of Finance (DOF) reported Thursday.

"The dividends collected by the national government help offset the subsidies given out to state enterprises performing crucial social functions," Finance Secretary Carlos Dominguez III was quoted as saying in an e-mailed statement.

"They will go a long way in helping us hold down deficits and continue funding the infrastructure and social programs of President [Rodrigo] Duterte," he added.

The latest figure compares with the P51.2 billion recorded in 2018, which was 41% higher than the P36.5 billion collected in 2017.

According to Dominguez, the additional dividends will help finance the pensions of the country's uniformed personnel, as well as the funding for the Rice Competitiveness Enhancement Fund (RCEF).

The Department of Budget and Management (DBM) last year said it has already released P54.231 billion for the pension requirements of retired military and uniformed personnel (MUP).

Meanwhile, the RCEF is mandated by the Rice Tariffication Law, to provide support for local farmers who will be hit by the liberalization of the rice commodity.

The RCEF will have an initial P10 billion, of which P5 billion will be allotted to farm mechanization and P3 billion to seedlings.

The fund intends to ensure that rice imports won’t drown out the agriculture sector and rob farmers of their livelihood. — MDM, GMA News