MANILA: The Department of Finance (DOF) announced that non-tax revenues had surged to PHP555.30 billion by the end of November 2024, marking a significant 45.6-percent increase compared to the same timeframe in the previous year. This unprecedented collection of non-tax revenues has allowed the DOF to secure ample resources to support the Marcos administration's key initiatives, which focus on enhancing the quality of life for Filipinos.
According to Philippines News Agency, projections for the full year place total non-tax revenue at PHP606.6 billion, setting a new record in the country's history. This figure surpasses the Budget of Expenditures and Sources of Financing (BESF) target for the year by PHP407.6 billion, representing a 204.9 percent increase. It also exceeds the 2023 total by PHP211.80 billion, or 53.6 percent. Finance Secretary Ralph Recto emphasized the need to generate additional funds to address the growing demands of the population, particularly in critical areas such as healthcare, education, food security, social protection, and national security.
The DOF attributes the rise in non-tax revenues to increased dividend contributions from government-owned and controlled corporations (GOCCs), which saw their remittance share rise from 50 to 75 percent of earnings. Meanwhile, further revenue was generated through the privatization of government assets and the reallocation of unused GOCC funds, as directed by Congress. As of December 9, 52 GOCCs had remitted PHP136.29 billion in dividends to the Bureau of the Treasury, surpassing the PHP100 billion target and marking a 35 percent increase from the previous year.
Additionally, the DOF collected PHP4.44 billion from the Privatization Management Office as of December 2024, a 129 percent increase from the same period last year. The funds were derived from asset sales, receivables from litigated assets, income from leases, and other sources. Notably, the government sold its shares in the NLEX Corporation for approximately PHP2.9 billion. Moreover, the government secured a PHP30 billion upfront payment from the SMC-SAP and Company Consortium, following the signing of the Concession Agreement for the Rehabilitation of Ninoy Aquino International Airport (NAIA), a project expected to generate about PHP900 billion in revenue over its 15-year term, with a potential 10-year extension.
Following the approval of new guidelines by the Privatization Council in September, further privatization efforts are underway. The council, chaired by the DOF, oversees the privatization program to ensure transparency and efficiency. Under Republic Act 11975, or the General Appropriations Act (GAA) of 2024, the DOF has allocated excess and unused GOCC funds for essential public services. As of December 19, PHP167.23 billion from the Philippine Health Insurance Corporation and the Philippine Deposit Insurance Corporation had been remitted to the Bureau of the Treasury, funding various health initiatives and foreign-assisted infrastructure projects across the country.
