The 2023 figures that will be presented were gathered from the 2023 annual audit reports (AARs) of the GOCCs as published by the Commission on Audit (COA). During the preparation of this report, the COA has yet to publish the AARs of eleven (11) GOCCs while twenty-seven (27) GOCCs do not have financial data. For those GOCCs without COA AARs as of this report, the financial information used were from the unaudited financial statements submitted in the GCG Integrated Corporate Reporting System (ICRS).

For prior year data, the same were updated based on the 2022 restated figures reflected in the respective 2023 COA AARS of the GOCCs.

Note in this report that the financial data of the Development Academy of the Philippines (DAP) was reinstated in 2023 pursuant to GCG Memorandum Order (M.O.) No. 2023-08.

The Total Assets of the GOCC Sector increased by ₱767.38 Billion or 6.58% from 2022. In terms of absolute amount, GOCCs under the Government Financial Institutions (GFIs) sector recorded the largest growth amounting to ₱607.32 Billion. This is primarily due to the increase in Securities of Land Bank of the Philippines (LANDBANK), Financial Assets of Government Service Insurance System (GSIS), and Investments of Philippine Health Insurance Corporation (PHILHEALTH). The other significant improvement is attributed to the changes in the fair value of Investment Property of Philippine Reclamation Authority (PRA). Notably, all the GOCC sectors, except for Energy and Materials and Realty / Holding Companies sectors, recorded increases in assets in 2023. Collectively, the Government Financial Institutions sector comprises 71.47% of the total assets of the GOCCs.

Total liabilities reached ₱18.44 Trillion in 2023, an 8.70% increase from the previous year, or a net ₱1.48 Trillion in absolute amount. While Energy and Materials, and Realty/Holding Companies saw a decrease in liabilities, the remaining sectors reported an increase. The major changes were attributable to the Government Financial Institutions (GFIs). Banking Institutions, particularly the Land Bank of the Philippines (LANDBANK), experienced significant growth in deposit liabilities. Social Security Institutions, particularly the Philippine Health Insurance Corporation (PhilHealth) and the Social Security System (SSS), saw large increases in provisions for insurance contract liabilities. Notably, GFIs dominated the GOCC sector's total liabilities, accounting for 88.90% of the 2023 balance.

The overall net worth of the GOCCs declined by ₱708.70 Billion, or a 13.40% decrease from the previous year. The Government Financial Institution (GFI) sector, specifically Social Security Institutions like PHILHEALTH and SSS, contributed significantly to this decline by ₱694.28 Billion and ₱460.32 Billion, respectively. The total net worth of the GOCC sector decreased due to a ₱1.48 Trillion (8.70%) increase in liabilities which outpaced the ₱767.38 Billion (6.58%) increase in assets.

Net Lending refers to the advances made by the National Government for the servicing of the guaranteed and re-lent domestic and foreign borrowings of GOCCs.

The Bureau of Treasury records show a slight decrease in the Net Lending of GOCCs from ₱27.21 Billion in 2022 to ₱26.81 Billion in 2023, or a decrease of ₱0.43 Billion. The 2023 amount was largely due to the advances provided to NFA amounting to ₱25.98 Billion.

The adjusted comprehensive income is used for this report to show a better measure of the financial performance of GOCCs. This normalizes the earnings by removing the effects of subsidies, unrealized gains and losses, and income from subsidiaries.

The GOCC sector's financial performance declined in 2023. The adjusted net loss recorded a 516.24% increase from ₱144.46 Billion in 2022 to ₱890.23 Billion in 2023. This is primarily due to the substantial impact of adopting PFRS 4, Insurance Contracts, on the expense accounts of Social Security Institution (SSI) GOCCs, particularly PHILHEALTH, SSS, and GSIS.

Conversely, several sectors experienced significant growth in adjusted comprehensive income. These include Trade, Area Development, and Tourism; Utilities and Communications; and Energy and Materials. Nevertheless, the decline in Government Financial Institutions was more substantial, outweighing the gains in these sectors.

The Governance Commission has been promoting the proper distinction between subsidies and program funds received by the GOCC sector. The term ‘subsidy’ is commonly equated to the underperformance of agencies or the inability of agencies to cover their operating expenses, leading to the further incurrence of corporate deficits and losses. Albeit true in some cases, data shows that bulk of budgetary support released to GOCCs is program or project funds.

Program or project subsidies are funds coursed through GOCCs to implement specific projects or programs more efficiently in the fulfillment of the vision of the National Government. Thus, changes and movements in the amounts of government subsidies could not be considered as an accurate measure of the performance - financial or otherwise - of GOCCs.

Program subsidies given to GOCCs have different intents and purposes. It may be used to implement infrastructure projects, as in the case of the National Irrigation Authority (NIA) and the National Housing Authority (NHA).

In 2023, the Philippine Health Insurance Corporation (PHILHEALTH) received a ₱50.75 Billion program subsidy to provide health insurance coverage for indigent members.

Government subsidies also funded infrastructure projects. National Irrigation Administration (NIA) received ₱40.74 Billion to develop and maintain irrigation systems nationwide.

Other notable GOCCs that received program subsidies in 2023 include the National Housing Authority (NHA) and the National Food Authority (NFA). The NHA received ₱18.27 Billion to implement housing programs and projects, while the NFA received ₱10.18 Billion for its Buffer Stocking Program during calamities.

A total of 31 GOCCs covered by Republic Act No. 10149 received program subsidies in 2023, amounting to ₱154.10 Billion.

Source: BTr Cash Operation Report for the period 1 January to 31 December 2023