The government expects to collect P10 billion worth of dividends from state-owned corporations including banks and social security institutions this year, higher compared to 2008’s actual remittances of P6.79 billion.

Last year’s target was only P4 billion. In 2007, government owned and controlled corporations (GOCCs) and government financial institutions (GFIs) paid the National Government P19 billion in total dividends.

Finance officials are hoping to exceed the P10-billion target since with the central bank remittances of P6 billion in July plus other GFI payments including Land Bank of the Philippines in the pipeline, the amount could be higher than expected.

The Bangko Sentral ng Pilipinas Monetary Board has recently approved Land Bank’s dividend payment request of P1 billion. The GFI projects an income of P6.5 billion for this year, higher than target of P5.5 billion.

Under Republic Act 7656, GOCCs must remit 50 percent of their income to the NG. The central bank pays higher dividends of 75 percent. The Commission on Audit in a 2007 report said the BSP still has back payments of P16 billion to the government as dividends.

In January this year the Department of Finance, anticipating a huge budget deficit as an impact of the global economic and financial crisis, have asked all GOCCs and GFIs to advance dividend payments for 2008.

The government is looking at a budget deficit of P250 billion for this year and P233.4 billion for 2009. As of end-August, the budget gap stood at P210 billion.

For 2010, the DoF has conservatively targeted dividend payments of only P4 billion, similar to what was programmed in 2008.