BSP remits record high dividends to state coffers

The country’s central bank recently completed remitting a record level of dividends to the government, an amount made possible by the financial regulator’s efficient operations and strong performance.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said it had declared dividends of P21.8 billion for the fiscal year 2018. This amount is the largest it has declared since the regulator was reestablished in 1993.

“The central bank is glad to contribute to government resources, which are essential to fostering inclusive econo­mic growth and enhancing the quality of life of Filipinos,” BSP Governor Benjamin Diokno said.

The BSP handed over P4 billion in partial dividends to the state’s coffers in February of last year and recently remitted P17.5 billion to complete the turnover to the government.

To date, the BSP has transmitted more than P26.9 billion in dividends to the government under the Duterte adminis­tration.

Under the law, government-owned or -controlled firms are required to remit at least 50 percent of their annual earnings to the government.

These funds are used by the central administration to finance public services and social programs and subsidize other money-losing state enterprises.

In 2018, dividends from state-owned or -controlled companies totaled P40.2 billion, representing a 32-percent increase—a record amount of remittances to the government since the practice was made compulsory 20 years ago.

The top contributors eve­ry year include the Philippine Amusement and Gaming Corp. and Philippine Deposit Insurance Corp.