GOCCs continue to play a significant role in generating additional funds for the National Government through dividend remittance. Pursuant to Section 3 of Republic Act (R.A.) No. 7656, "[a]ll government-owned or controlled corporations shall declare and remit at least fifty percent (50%) of their annual net earnings as cash, stock or property dividends to the National Government."

Thus, all GOCCs covered by the Act shall annually declare and remit Dividends directly to the National Government in the name of the Treasurer of the Philippines on or before 15 May of each year.

Through a letter dated 03 March 2025, the Bureau of Treasury endorsed the Monthly Consolidated Report on NG Collections from GOCCs covering 01 January to 31 December 2024 wherein the total dividends received from the GOCC sector amounted to ₱138.456 billion, ₱79.119 billion or 57% of which is attributable to GOCCs within the jurisdiction of R.A. No. 10149, while the remaining 43% represents the GOCCs that are either not covered, i.e. GOCCs covered by the Department of Budget and Management, or excluded from the coverage of the same Act, i.e. Bangko Sentral ng Pilipinas, state universities and colleges, cooperatives, local water districts, economic zone authorities and research institutions. The distribution is illustrated hereunder:

The top dividend contributors emerge from the sectors of Government Financial Institutions (GFIs), followed by the Utilities and Communications, and finally the Gaming Sector. The total dividend remittance per sector is presented in the table below:

The Landbank of the Philippines (LANDBANK) posted the highest dividend remittance, amounting to ₱32.119 billion which is expected to fund priority infrastructure and socio-economic programs. This reaffirms the corporation’s critical role in advancing national development.

This is followed by the Philippine Deposit Insurance Corporation (PDIC) which ranked second at ₱10.675 billion. Under the Utilities and Communications sector, the Philippine Ports Authority (PPA) remitted ₱5.058 billion, as well as the Manila International Airport Authority (MIAA) with total contributions amounting to ₱3.459 billion.

Finally, the Gaming Sector also emerged as a major source of dividends. The Philippine Amusement and Gaming Corporation (PAGCOR) contributed ₱4.596 billion while the Philippine Charity Sweepstakes Office (PCSO) remitted ₱2.684 billion.

These dividend remittances highlight the increasing financial role of GOCCs in helping stabilize government finances and the rising spending requirements.

The Total Assets of the GOCC Sector increased by P851.29 billion or 6.79% from 2023. In terms of absolute amount, GOCCs under the Government Financial Institutions (GFIs) sector recorded the largest growth amounting to P550.50 billion. This is primarily due to the increase in Loans and Other Receivables of Land Bank of the Philippines (LANDBANK), Financial Assets of Government Service Insurance System (GSIS), Financial Assets of Social Security System (SSS), and Receivables of Home Development Fund (Pag-IBIG Fund). Notably, all the GOCC sectors, except Realty/Holding Companies sector, recorded increase in assets in 2024. Collectively, the Government Financial Institutions (GFIs) sector comprises 71.54% of the total assets of the GOCCs.

Total liabilities reached P20.76 trillion in 2024, a 12.69% increase from the previous year, or a net P2.34 trillion in absolute amount. While Educational and Cultural, 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), Government Service Insurance System (GSIS), 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 89.42% of the 2024 balance.

The overall net worth of the GOCCs declined by P1.49 trillion, or a 25.20% decrease from the previous year. The Government Financial Institutions (GFIs) sector, specifically Social Security Institutions such as GSIS, PHILHEALTH, and SSS, contributed significantly to this decline by P272.27 billion, P278.04 billion, and P1.13 trillion, respectively. The total net worth of the GOCC sector decreased due to a P2.34 trillion (12.69%) increase in liabilities which outpaced the P851.29 billion (6.79%) 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 (BTr) records show that Net Lending fell by P19.878 Billion, or a 74.15% decline, from P26.81 Billion in 2023 to P6.93 Billion in 2024.

The decrease was largely driven by the decline in advances provided to National Food Authority (NFA) whose balance dropped by P19.130 Billion (73.62%), from P25.984 Billion in 2023 to P6.854 Billion in 2024.

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 overall financial performance of the GOCC sector slightly declined in 2024. The adjusted net loss increased by 5.33%, from P1,011.619 Billion in 2023 to P1,065.50 Billion in 2024. This decrease is largely driven by the effect of adopting PFRS 4, Insurance Contracts, on the expense accounts of Social Security Institution (SSI) GOCCs, particularly PHILHEALTH, SSS, and GSIS. The sectors of Agriculture, Fisheries, and Food, and Utilities and Communications likewise recorded declines in adjusted comprehensive income.

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

Excluding the effects of PFRS 4 adoption, the adjusted comprehensive income of the GOCC Sector increased by ₱409.35 Billion, or 98.46%.

These impacts are primarily attributable to the remeasurement of Insurance Contract Liabilities (ICL) and the changes in aggregate policy reserves. These adjustments are in compliance with the Department of Finance (DOF) policy directive requiring government insurance institutions under its supervision to adopt PFRS 4, Insurance Contracts, starting CY 2020.

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.

In 2024, the National Irrigation Administration (NIA) received ₱71.21 Billion program subsidy to develop and maintain irrigation systems nationwide, while Philippine Health Insurance Corporation (PHILHEALTH) received a ₱9.60 Billion to provide health insurance coverage for indigent members.

Other notable GOCCs that received program subsidies in 2024 include the National Food Authority (NFA) and the Power Sector Assets and Liabilities Management Corporation (PSALM). The NFA received ₱11.25 Billion for its Buffer Stocking Program during calamities, while the PSALM received ₱8.0 Billion to cover payments for stranded contract costs and stranded debts.

A total of 43 GOCCs covered by Republic Act No. 10149 received program subsidies in 2024, amounting to ₱138.72 Billion.

(Data Source: BTr Cash Operations Report for the period 1 January to 31 December 2024, accessible at https://www.treasury.gov.ph/?page_id=4221)