PRIVATIZATION PROCEEDS DOWN 31% IN H1

Revenues raised by the national government through the privatization of state assets in the first half dropped 31 percent year-on-year to P223.07 million despite a surge in remittances in June.

The latest Bureau of the Treasury data on Wednesday showed privatization proceeds from January to June declined from P321.63 million a year ago.

But the Department of Finance-attached Privatization and Management Office (PMO) collected its biggest monthly haul so far last month, amounting to P191.36 million— P1.85 million from sales, P7.36 million from lease rental, plus P182.15 million from other income. The PMO also collected interest and other incomes like dividends from shares in corporations.

The Presidential Commission on Good Government (PCGG) remained unable to dispose of any asset as of June. The PCGG had been tasked to recover ill-gotten wealth by the late dictator, former President Ferdinand Marcos, as well as his family and cronies. In the first half of 2020, the PCGG raised

P60.77 million from privatization.

The Cabinet-level Development Budget Coordination Committee has set the privatization revenue target at P500 million for 2021.

While the Duterte administration will no longer slap new or higher taxes due to harder times caused by the COVID-19 pandemic, the government turns to privatization to raise more revenues, which would help bridge the widening budget gap and repay ballooning debt.

The government plans to sell a couple of mining assets.