Philippines Eyes Closure of 10% of Underperforming GOCCs to Boost Fiscal Health

MANILA, Philippines — Philippine state-run firms failing to deliver value and are draining state resources should be shut down, with their functions absorbed by other agencies to free up fiscal space for more relevant programs and services, the Department of Finance said. The DOF explained that the move to abolish non-performing government-owned and -controlled corporations (GOCCs) can provide resources for other endeavors. “We have over 100 GOCCs. I would say about 10 percent of them should be closed. But there are government procedures to follow so it’s a little slow,” Finance Secretary Frederick Go told radio dzRH. Go said reviewing GOCCs that may face closure is a “cyclical process.” The move comes as budgetary support given to state-run firms reached P98 billion in the first five months of 2026. However, the Marcos administration has collected P501 billion in dividends from GOCCs in four years, which is 31 percent higher than the P382 billion collected in former president Rodrigo Duterte’s full term. It also surpassed the numbers from the Gloria Arroyo and Noynoy Aquino administrations with P84 billion and P165 billion, respectively. Last month, the government recognized 50 GOCCs for their record dividend remittance of P147.15 billion, led by the Bangko Sentral ng Pilipinas (BSP) and the Land Bank of the Philippines. Under Republic Act 7656, or the Dividend Law, GOCCs are required to declare and remit at least 50 percent of their net earnings during the preceding year as dividends to the national government. The DOF has urged firms to raise their dividend remittance rate to 75 percent to maximize non-tax revenues and strengthen the government’s fiscal position.