The Department of Finance (DOF) expects the Philippines to achieve a historic P606.6 billion in non-tax revenues for 2024, exceeding targets by more than 200 percent and surpassing the 2023 total by more than half.
“Emerging non-tax revenues for the full year 2024 are expected to reach P606.6 billion—the highest ever recorded,” the DOF said in a Dec. 28 statement.
This would surpass the 2024 Budget of Expenditures and Sources of Financing (BESF) target by P407.6 billion and exceed the 2023 figure by P211.8 billion, or 53.6 percent.
This, after the government has collected a total of P555.30 billion in non-tax revenues as of end-November, marking a significant (45.6 percent) increase compared to the same period last year.
“We need to raise more funds to meet the growing needs of our people,” said Finance Secretary Ralph G. Recto.
“On top of tax collections, the non-tax revenue sources help us marshal additional resources to equip the government in delivering more and better services in critical areas like healthcare, education, food security, social protection, and national security,” Recto explained.
The DOF boosted non-tax revenues by increasing government-owned and -controlled corporations (GOCC) dividend remittance to 75 percent, privatizing assets, and reallocating unused GOCC funds as directed by Congress.
As of Dec. 9, GOCCs remitted P136.29 billion in dividends to the Bureau of the Treasury (BTr), surpassing the P100 billion target and rising 35 percent year-on-year.
As per DOF, its privatization efforts yielded P4.44 billion by end-2024, a 129 percent increase year-on-year. Proceeds from these included asset sales, leases, dividends, and more, with a notable P2.9 billion sale of government shares in NLEX Corporation.
The government also secured a P30 billion upfront payment from SMC-SAP & Co. Consortium for the Ninoy Aquino International Airport (NAIA) rehabilitation deal, expected to generate P900 billion in revenues over a 15-year term.
Excess GOCC funds
“On top of these, the DOF has put the excess and unused GOCC funds to efficient use this year, as mandated under Republic Act No. 11975 or the General Appropriation Act (GAA) of 2024,” the DOF stated.
Just over a week ago, the DOF remitted P167.23 billion from the Philippine Health Insurance Corporation (PhilHealth) and the Philippine Deposit Insurance Corporation (PDIC) to the BTr.
Excess GOCC funds, according to the DOF, were used to finance health benefits, medical equipment, new health facilities, and salary increases for government workers.
It also supported counterpart financing for major foreign-assisted projects, including bridges, subways, agriculture, and nutrition initiatives nationwide.