Privatization revenues down 32% to P 260.2M as of end November

Revenues raised by the government from its privatization ventures dropped by nearly a third to P260.2 million during the first 11 months of 2021, despite higher collection in November amid further economic reopening.

The latest Bureau of the Treasury data showed that end-November revenues from sales, lease rental and other privatization income declined 32 percent from P381.6 million a year ago, due mainly to the pandemic.

From January to November, the Department of Finance (DOF)-attached Privatization and Management Office (PMO) collected P182.2 million from other income, P62.6 million from lease rental, and P15.4 million from sales.

In November alone, the PMO generated P14.4 million from lease rentals. Year-on-year, the privatization proceeds collected by the PMO rose from P4.9 million in the same month last year.

PCGG

So far this year, all privatization revenues came from the PMO, as the Presidential Commission on Good Government (PCGG) did not dispose of any assets related to alleged ill-gotten wealth of dictator Ferdinand Marcos and his cronies during the 11-month period.

Finance Undersecretary Gil Beltran earlier told the Inquirer that most privatization proceeds were expected to come on-stream by this year’s end as they had been conservatively estimated and scheduled.

Documents on the proposed P5.02-trillion 2022 national budget had shown the government plans to raise P500 million from privatization yearly starting this year until 2023.

New taxes

While the Duterte administration will no longer slap new or higher taxes due to the harder times wrought by the prolonged COVID-19 pandemic, the government plans to privatize a couple of idle mining assets to raise additional revenues, narrow the budget deficit, and repay ballooning debt.

The government was also looking into privatizing the commercial functions of the state-run Philippine Amusement and Gaming Corp. as well as Philippine Charity Sweepstakes Office.

Last year, privatization revenues slid 46 percent to P475.1 million from P881.8 million in 2019, as the most stringent COVID-19 lockdown restrictions delayed the remittance of proceeds usually sourced from sales, lease rental, interest income and other income like dividends from shares in corporations. INQ