NONTAX REVENUE is on track to surpass this year’s target, and is projected to come in at a record P606.6 billion, after government companies were made to remit more of their earnings as dividends, with the government also accessing their reserve funds, the Department of Finance (DoF) said.
“Finance Secretary Ralph G. Recto has maximized nontax revenue in 2024, collecting a record-high amount to support more projects and programs,” the DoF said in a statement over the weekend.
The projected 2024 total was 45.6% higher than the P407.5 billion target laid out in the 2025 Budget of Expenditures and Sources of Financing.
The Bureau of the Treasury (BTr) said nontax revenue grew 45.6% to P555.3 billion in the first 11 months.
The DoF also said it “maximized” non-tax revenue after increasing the dividend contribution of government-owned and -controlled corporations (GOCCs) to 75% of their earnings from 50%.
Additional funds were generated from “more privatization of government assets; and a sweep of unused and excess funds of GOCCs as mandated by Congress.”
As of Dec. 9, P136.29 billion in dividends have been remitted by 52 GOCCs, the BTr said. It exceeded the P100 billion target for the year and is 35% higher year on year.
The DoF said it put the excess and unused GOCC funds “to efficient use this year,” in compliance with Republic Act No. 11975 or the General Appropriation Act of 2024.
Fund balances amounting to P167.23 billion from the Philippine Health Insurance Corp. (PhilHealth) and the Philippine Deposit Insurance Corp. had been remitted to the Treasury as of Dec. 19.
The Supreme Court issued a temporary restraining order (TRO) on the further transfer of the remaining P29.9 billion in PhilHealth reserve funds.
The TRO was issued after P60 billion from the health insurer had been transferred to the Treasury.
The high court scheduled oral arguments on the TRO for Jan. 14.
Despite the backlash against the transfers, the DoF said these excess and unused funds supported the Public Health Emergency Benefits and Allowances for Health Care and Non-Healthcare Workers.
It added that they also bankrolled the Medical Assistance to Indigent and Financially Incapacitated Patients program and the procurement of various items of medical equipment for Department of Health (DOH) hospitals, local government unit hospitals, and primary care facilities.
The DoF added that the funds were used for the construction of three DoH facilities; and salary hikes for government workers.
The transfers also went into counterpart financing for foreign-assisted projects such as the Panay-Guimaras-Negros Island Bridges, the Metro Manila Subway Project, and the Philippine Multi-Sectoral Nutrition Project.
The Mindanao Inclusive Agriculture Development Project, the Cebu — Mactan Bridge and Coastal Road Construction Project, and the Road Network Development Project in Conflict-Affected Areas in Mindanao were also among the projects supported. — Aubrey Rose A. Inosante