DOF 'constrained' to ask for additional funds due to low gov't revenues

The Philippines is now constrained to ask for a supplemental budget to finance efforts against the coronavirus given the decline in government revenues, the Department of Finance (DOF) said Tuesday.

In a Senate hearing on Tuesday, Finance Secretary Carlos Dominguez III said that government revenue collections have declined given the limited economic activity brought about by the lockdowns.

"We are constrained in asking for additional supplemental budget because we do not have additional revenues. Our revenues have plummeted because of the lockdown and lack of economic activity our tax collections are really down," he told lawmakers.

Dominguez was questioned by Senator Ralph Recto why the limited amount was being sought for additional supplemental budget, considering that the global pandemic was one of the biggest crises in history.

For the meantime, Dominguez said additional funds have been received from government-owned and -controlled corporations (GOCCs) in terms of dividends.

Dominguez said the administration has already swept as much cash as possible from the GOCCs, as he said that dividends from January to March have already reached some P130 billion, compared to P60 billion for the full-year 2019.

"That is the additional funds that we have, so we do not have the required additional revenue to support an additional supplemental budget," he said.

"We are living within our means, plus we are trying to appropriate whatever we have to support our most vulnerable members of our community and we are also trying to use the cash that we have in the most responsible way," added Dominguez. - MDM, GMA News