Finance Secretary Eyes P100 Billion from Asset Sale to Plug Marcos Administration’s Budget Deficit
MANILA, Philippines — Finance Secretary Ralph Recto expressed his goal of raising P100 billion from the government’s pipeline of assets that are up for sale. This move is aimed at bridging the Marcos administration’s budget deficit and reducing debt.
Recto shared with reporters on the sidelines of the Economic Journalists Association of the Philippines’ induction ceremony that the Department of Finance (DOF) is still finalizing its target revenue from asset sales for this year. Figures revealed that the Privatization and Management Office (PMO) of the DOF remitted P1.88 billion to the Bureau of the Treasury last year from the sale of nonperforming state assets, cash dividends, and other forms of revenue, exceeding the PMO’s remittance target by 187.9 percent.
The PMO plans to prioritize disposing of assets that are costly to maintain this year, as well as those free from informal settlers and unresolved legal cases.
Recto also mentioned plans to publish a list of properties on the auction block to attract potential buyers. The Government Service Insurance System has already shown interest in purchasing an asset on Roxas Boulevard in Manila.
In an effort to avoid imposing new taxes to address the budget deficit, Recto is focusing on collection efficiency and reducing unnecessary spending. The government may consider increasing fees and charges, as well as boosting nontax revenues from dividends of state-run firms and proceeds from the sale of government assets.
The move towards aggressive privatization comes as the Marcos administration’s budget deficit is projected to reach P1.4 trillion this year.
