The Total Assets of the GOCC Sector increased by P488.25 Billion or 4.39% from 2021. In terms of absolute amount, GOCCs under the Government Financial Institutions (GFIs) recorded the biggest upward change amounting to P376.5 Billion primarily due to the increase in Investment Securities of Philippine Health Insurance Corporation (PHILHEALTH) and increase in Mortgage and Sales Contract Receivable of Home Development Mutual Fund (Pag-IBIG Fund). Other notable improvements were driven by the construction of infrastructure projects in the Fishery and Utility sectors, as well as increases in liquid assets in the Gaming Sector. Notably, all the GOCC sectors, save the Educational and Cultural sector, recorded increases in assets during the year. Collectively, the Government Financial Institutions sector accounts for 71% of the total assets of the GOCCs at P8.31 Trillion.

On the other hand, the total Liabilities amounted to P16.92 Trillion in 2022, representing a slight decrease of 0.18%, or a net effect of P30.23 Billion from the previous year. A decrease in liabilities was recorded for Government Financial Institutions (GFIs), Trade, Area Development and Tourism, and Educational and Cultural sectors while the remaining sectors reported increases in total liabilities. The major changes were attributable to the GFIs. While the total liabilities of Banking Institutions increased primarily in terms of deposit liabilities of Land Bank of the Philippines (LANDBANK), a higher decrease in liabilities was recorded for Social Security Institutions due to the lower accrued benefits payable in the books of PHILHEALTH. Notably, the majority of the total liabilities of the GOCC sector is from the GFIs accounting for 88% of the 2022 balances.

The overall net worth of the GOCCs increased by P518.47 Billion, equivalent to an 8.91% improvement during the two-year period. Of this increase, P473.40 Billion, or 91.79% is attributable to the Government Financial Institution (GFI) sector, specifically to Social Security Institutions, namely, PHILHEALTH and Pag-IBIG Fund, which recorded increases of P103.95 Billion and P87.24 Billion, respectively. The total net worth of the GOCC sector improved as a result of the P488.25 Billion (4.39%) increase in assets and a slight decrease of P30.23 Billion (-0.18%) in its liabilities.

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.

Records from the Bureau of Treasury show that the Net Lending of GOCCs increased from P17.88 Billion in 2021 to P27.21 Billion in 2022 or by P9.33 Billion. Majority of the amount in 2022 was due to the advances provided to NFA amounting to P25.12 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 recovered by 80.59% from an adjusted net loss of P701.94 Billion in 2021 to P136.24 Billion in 2022. The adjusted net loss of the sector also takes into consideration the substantial effect of the adoption of PFRS 4, Insurance Contracts on the expense accounts of GSIS and SSS. For the years 2021 and 2022, GSIS and SSS recognized net changes in policy reserves/insurance contract liabilities which significantly diminished the Net Income of these GOCCs.

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 2022, NIA received a total program subsidy of ₱40.66 Billion, which was used to support the construction, operation, and maintenance of national and communal irrigation systems, while the NHA received ₱17.13 Billion for the implementation of housing programs and projects.

Aside from the implementation of infrastructure projects, program subsidies may also be used to fund the provision of basic human needs and protection of the vulnerable sectors of the society, as in the case of the Philippine Health Insurance Corporation (PhilHealth).

In 2022, ₱80.05 Billion was released to PhilHealth to cover the payment of premium contributions and medical claims of the subsidized sector, such as indigent members, senior citizens, and sponsored members.

A total of 35 GOCCs covered by Republic Act No. 10149 received program subsidies in 2022, amounting to ₱192.97 Billion.

Source: BTr Report on Actual NG Fiscal Performance for the period 1 January to 21 December 2022

Under R.A. No. 7656, otherwise known as the “Dividends Law,” GOCCs are required to declare and remit at least fifty percent (50%) of their annual net earnings as cash, stock or property dividends to the National Government. For 2022, the Bureau of Treasury (BTr) recorded a total P48.64 Billion dividends from 50 GOCCs covered by R.A. No. 10149. This amount is higher by 23% compared to the P39.42 Billion total remittances in 2021. It must be noted, however, that the 2022 dividend remittance includes the special cash dividend remittance of the Land Bank of the Philippines (LANDBANK) in the amount of P8.45 Billion representing the net gain realized from the acquisition of the United Coconut Planters Bank (UCPB). UCPB was merged with the LANDBANK in 2021 pursuant to Executive Order No. 142, s. 2021. The following table shows the GOCCs which remitted at least P1 Billion and are part of the prestigious Billionaires Club: