GSIS generates P1 billion savings in 2004

The Government Service Insurance System (GSIS) has generated P1.085 billion in savings from its administrative and operating expenses last year.

Data released by the state pension fund showed that the GSIS approved a total budget of P5.983 billion for its administrative and operating expenses in 2004. However, actual GSIS expenditures reached only P4.898 billion, thus saving P1.085 billion for the fund.

According to GSIS president and general manager Winston Garcia, this proves the GSIS’s solid support to the government’s austerity measures as directed by President Arroyo in August last year to cope with the then fiscal crisis.

The GSIS realized the savings after Garcia issued Office Order No. 102-04, directing all GSIS functional group heads to implement at compulsory cut of 20 percent on all controllable expenses and 10 percent reduction in all non-controllable expenses starting last September.

Garcia issued the order to comply with the President Administrative Order No. 103 issued on Aug. 31, 2004, directing all government agencies to implement austerity measures by cutting down on both controllable and non-controllable expenses to cope with the 10 ongoing fiscal crisis caused by the national budgetary deficit.

In a letter to Mrs. Arroyo, GSIS chairman Bernardino Abes reiterated the state pension fund’s adherence to the goals of AO 103, committing a total savings of at least P737.285 million for 2004. But the savings goal was even surpassed by more than P300 million.

GSIS was the highest net income earner among government corporations, totaling P35.6 billion in 2003. It also achieved the highest asset level among government firms, amounting to P297.4 billion in 2003. This ensured the viability of the government pension fund for decades to come, GSIS officials said.