President Ferdinand R. Marcos Jr. on Wednesday urged government-owned and -controlled corporations (GOCCs) to uphold fiscal discipline and prudent stewardship after they remitted PHP140 billion in dividends to the national government, saying the funds will help finance essential public services without imposing new taxes on Filipinos.
Speaking during the 2026 GOCC Day in Malacañang, Marcos said the dividend remittances show that sound governance and responsible management of state-owned firms directly benefit the public.
“Every peso that you have remitted strengthens the government’s capacity to deliver better services without imposing additional tax burdens on ordinary Filipinos,” Marcos said.
“It is proof that sound governance and fiscal responsibility can create opportunities for our people while sparing them from bearing greater financial sacrifice.”
Under Republic Act No. 7656, or the Dividend Law, GOCCs are generally required to declare and remit at least 50 percent of their annual net earnings to the national government, subject to applicable exemptions.
This year, 50 GOCCs declared PHP147.15 billion in dividends, with PHP140 billion remitted as of July 8. The remaining balance is expected before year-end.
Marcos said the collections have already surpassed last year’s total after the Department of Finance encouraged GOCCs to raise their remittances to 75 percent of net earnings.
“It was an ambitious target, one that demanded discipline, efficiency, and a strong commitment to the highest standards of public stewardship. I am pleased that the response from our GOCCs has shown that such standards are within our reach,” he said.
The President said the dividend collections will provide additional funding for priority government programs.
He said the amount could finance the construction of nearly 40,000 classrooms, provide about 165,000 housing units for Filipino families, or build around 8,700 to 9,300 kilometers of farm-to-market roads linking farmers and fisherfolk to markets.
While recognizing GOCCs for their financial contributions, Marcos reminded state-run firms that profitability should never outweigh their public service mandate.
“While some GOCCs are created to generate revenue and ensure financial sustainability, may you never lose sight of the reason that you exist. Your foremost mandate is that of public service. Profit is never the end in itself. It is just a means to better serve our people,” he said.
He also urged GOCCs to continue modernizing operations, embrace innovation, and eliminate inefficiencies.
“At the same time, let us remain steadfast in practicing fiscal discipline. Public resources must never be treated as privileges to be spent, but as responsibilities to be managed wisely, transparently, and intentionally,” Marcos said.
GOCC Day is observed annually to recognize the contribution of state-owned corporations to nation-building through dividend remittances, a major source of non-tax revenue for the national government. (PNA)
