Government revenues from asset sales surged in the first half of the year but well behind the target set by the Department of Finance (DOF), data from the Bureau of the Treasury showed.
Between January and June 2024, the national government garnered P411.52 million through the privatization of state-owned assets, a substantial increase from the P53.17 million recorded in the same period last year.
However, the end-June figure represents only a mere one percent of the DOF’s target of P42.12 billion for the year.
For 2024, the DOF aims for proceeds from the sale of state-owned assets to contribute one-tenth of the government's non-tax revenue goal of P407.49 billion.
The majority of the privatization proceeds in the first half of the year stemmed from the sales of properties owned by the Metropolitan Manila Development Authority and Nonoc Mining, yielding P165.06 million and P147.96 million, respectively.
Additionally, lease rentals from government properties added P69.36 million to the government coffers, with an extra P25.62 million garnered from the privatization of assets from Al Amanah Islamic Bank.
Furthermore, the privatization of select assets of Northern Cement Corp. contributed P3.11 million to the government's revenue stream during the period.
Based on the quarterly fiscal program released by the Development Budget Coordination Committee (DBCC) in May, the government expects to raise P42.12 billion in proceeds from its privatization program in 2024.
If achieved, the revenues from privatization will mark a substantial increase compared to the mere P865 million generated in 2023.
During the Arroyo administration, the government actively engaged in privatization, which included the sale of its stake in Petron Corp., the crown jewel in the oil industry in 2008.
Last March, Finance Secretary Ralph F. Recto revealed plans to raise P100 billion through the sale of government assets to help address the budget deficit and reduce debt under the Marcos administration.
“We want to hit a hundred billion,” Recto told reporters. “The idea is to plug the deficit. And to bring our debt-to-GDP (gross domestic product) ratio down, too.”
Instead of implementing new taxes, President Marcos is focusing on improving tax administration and asset sales to effectively manage the budget deficit.