Senator Win Gatchalian said the congressional oversight review of the national budget should include subsidies given to government-owned and controlled corporations (GOCCs), as the Department of Budget and Management has launched a fiscal crackdown on GOCCs that continue to draw huge subsidies from the national government (NG). 

“I strongly support the DBM’s call for fiscal discipline. We need to make a proper assessment of GOCCs that remain on life support from the national government year after year,” said Gatchalian, chair of the Senate Committee on Finance.

Under DBM Corporate Budget Memorandum 48, GOCCs that have remained heavily dependent on NG budgetary support for the past 10 consecutive years shall be automatically flagged and may be subjected to mandatory institutional review. Such a review refers to a structural assessment or study to determine whether the GOCC should continue operating as a corporation, be restructured, merged, rationalized, or converted into a national government agency based on its mandate, performance, and fiscal impact.

“The DBM and the Governance Commission for GOCCs (GCG) must prioritize weeding out non-performing GOCCs. For as long as these GOCCs are active, they can request subsidies, making a significant dent in the national budget,” Gatchalian said. 

Photo by Mark Cayabyab / OS GATCHALIAN