BSP remits record-high P21.5 billion to state coffers

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has remitted an all-time high P21.48 billion in dividends to the national coffers in support of the government’s social programs and projects.

BSP Governor Benjamin Diokno said this was the largest turned over to the national government since the enactment of Republic Act 7653 or the New Central Bank Act of 1993 creating the BSP.

“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,” Diokno said.

The BSP recently remitted P17.48 billion to complete the turn over to the national treasury after handing over P4 billion in partial dividends last Feb. 20.

According to the BSP, it has transmitted more than P26.96 billion in dividends to the national government under the Duterte administration.

President Duterte signed RA 11211 last February amending RA 7563 or the New Central Bank Act of 1993. It allowed the BSP to raise its capitalization to P200 billion from P50 billion, to be sourced from dividends declared by the BSP in favor of the national government.

The new charter also exempts the central bank from paying taxes on income derived from governmental functions.

Government-owned and controlled corporations (GOCCs) are mandated by RA 7656 enacted in 1994 to declare and remit at least half of their income as dividends to the national government.

Data from the Department of Finance (DOF) said dividends collected by the national government from state-run corporations reached P69 billion in 2019, 71.6 percent higher than the P40.2 billion collected in 2018.