Dividend payments by state-owned, controlled corporations (GOCCs) and government financial institutions (GFIs) doubled in January to May this year, the Department of Finance (DoF) said.

Finance Undersecretary Jeremias N. Paul, Jr., said over the weekend that the national government has collected P1.6 billion in dividends at end-May, higher by 112 percent than the P753 million in the same period last year.

The Philippine government is hard-pressed for additional stream of revenues due to weaker than programmed collections due to its failure to sell three state-assets.

The government has been urging GOCCs and GFIs to voluntarily increase their dividend remittances to the national coffers to raise much-needed financing for key infrastructure projects and basic social services at the same time narrow the budget deficit.

Among top GFIs that have turned in dividends are the Development Bank of the Philippines with P1 billion, the Bangko Sentral ng Pilipinas shared P696 million and state-owned company National Development Company with P50 million.

Meanwhile, government's expenses in subsidizing the operations of GOCCs grew by 302 percent last month.

Data from the Bureau of Treasury showed that the government spent P2.84 billion in subsidies in May, significantly higher compared with only P942 million in the same period last year.

Last month, the state-owned firms that enjoyed hefty subsidies were the cash-strapped National Food Authority (NFA) with P2.03 billion, and the National Housing Authority (NHA) with P255 million.

In January to May, the government spent P7.28 billion in subsidies, higher by 45 percent compared with P5.03 billion in the same month in 2009.

For 2010, the Department of Finance has programmed P14.1 billion in subsidies, or 19 percent lower compared with the P17.4 billion in the previous year.

For years, the departments of budget and finance have been releasing subsidies to GOCCs and GFIs despite the fiscal deficit position. These subsidies are released to corporations with depleted capitalization.

Under the law, the Department of Budget and Management is mandated to release equity, subsidy and net lending to GOCCs and government financial institutions.

The DoF has been closely monitoring problematic GOCCs including NFA, Home Guaranty Corporation, National Electrification Administration, National Development Company, Philippine National Railways and the Land Rail Transportation Authority.