Why not defund persistently nonperforming government-owned and controlled corporations (GOCCs) instead of merely reducing their subsidies, so the government can maximize its limited resources?
Sen. Panfilo “Ping” M. Lacson raised this possibility Thursday as he asked the government’s economic managers about their policy on GOCCs that still receive subsidies every year despite persistently generating no revenues or providing little or no apparent benefit.
In Filipino: Lacson: Bakit Hindi I-Defund ang mga Patuloy na Nonperforming GOCC?
“What is the new policy of the government sa nonperforming GOCC? Ito ang year in year out sina-subsidize ng national government pero mukhang wala namang pakinabang. Unlike the others nakakuha tayo from GOCCs, pero iba naman talagang persistently walang income, lahat expenses, walang revenues pero tuloy-tuloy naman ang subsidies (What is the new policy of the government on nonperforming GOCCs? These are the ones that the national government subsidizes every year but don’t give any important revenue or service in return – all expenses and subsidies but no revenues),” he said at the Development Budget Coordinating Committee briefing at the Senate.
“Why don’t we just abolish them, or not fund them for that matter? Even if it’s not abolished by law, kung walang fund, hindi maka-function (Why not just abolish them, or not fund them for that matter? Even if they are not abolished by law, they can no longer function without funding),” he added.
Finance Secretary Frederick Go said the Governance Commission for GOCCs is considering 21 GOCCs for closure, winding down or absorption by other GOCCs, but the process is “very slow, long and tedious.”
Budget Secretary Kim Robert de Leon added they are considering separation incentives for potentially affected personnel.
Lacson asked how much the national government had been subsidizing nonperforming GOCCs annually, particularly from 2022 to 2026, stressing that the issue deserved attention given the country’s tight fiscal space.
“I understand the complexities, kasi may ma-displace na staff, mga personnel manning those GOCCs. Ano plano in case we abolish them? Ano ang contingency plans? They are government employees. Maybe that’s one of the reasons why you are finding difficulty in abolishing ibang GOCCs, for humanitarian. Pero we cannot also afford to consider humanitarian reasons in view of the very tight fiscal space that we’re having now (I understand the complexities because there will be staff who will be displaced. What are your contingency plans in case the GOCCs are abolished? These are government employees. Maybe that’s one reason why you find difficulty in abolishing these GOCCs. But we cannot afford to consider humanitarian reasons in view of the very tight fiscal space we’re having now),” Lacson said.
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Lacson: Bakit Hindi I-Defund ang mga Patuloy na Nonperforming GOCC?
Bakit hindi na lamang i-defund o tanggalan ng pondo ang mga government-owned and controlled corporations (GOCCs) na patuloy na “nonperforming,” sa halip na bawasan lamang ang kanilang subsidiya, para masulit ng gobyerno ang limitadong resources nito?
Iminungkahi ito ni Sen. Panfilo “Ping” M. Lacson nitong Huwebes nang tanungin niya ang mga economic manager ng gobyerno tungkol sa polisiya nito sa mga GOCC na patuloy na tumatanggap ng subsidy taun-taon kahit na walang kinikita o kakaunti o halos walang naibibigay na serbisyo.
“What is the new policy of the government sa nonperforming GOCC? Ito ang year in year out sina-subsidize ng national government pero mukhang wala namang pakinabang. Unlike the others nakakuha tayo from GOCCs, pero iba naman talagang persistently walang income, lahat expenses, walang revenues pero tuloy-tuloy naman ang subsidies,” aniya sa Development Budget Coordinating Committee briefing sa Senado.
“Why don’t we just abolish them, or not fund them for that matter? Even if it’s not abolished by law, kung walang fund, hindi maka-function,” dagdag niya.
Sinabi ni Finance Secretary Frederick Go na pinag-aaralan ng Governance Commission for GOCCs ang pagsasara, pag-phase out o pagsanib sa ibang GOCC ng 21 GOCCs, bagama’t “very slow, long and tedious” ang proseso.
Dagdag naman ni Budget Secretary Kim Robert de Leon, pinag-aaralan din nila ang pagbibigay ng separation incentives sa mga personnel na maaaring maapektuhan.
Tinanong ni Lacson kung magkano ang taunang subsidy ng national government sa mga nonperforming GOCC, partikular mula 2022 hanggang 2026, at binigyang-diin na dapat itong pagtuunan ng pansin dahil sa masikip na fiscal space ng bansa.
“I understand the complexities, kasi may ma-displace na staff, mga personnel manning those GOCCs. Ano plano in case we abolish them? Ano ang contingency plans? They are government employees. Maybe that’s one of the reasons why you are finding difficulty in abolishing ibang GOCCs, for humanitarian. Pero we cannot also afford to consider humanitarian reasons in view of the very tight fiscal space that we’re having now,” ani Lacson.
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