DoF slashes this year’s privatization goal to P5B

Finance Assistant Secretary Karlo Fermin S. Adriano said the DoF has reduced its privatization goal by 95% to P5 billion, from the previous goal of P101 billion.

It was aligned to changes to the medium fiscal term fiscal framework (MTFF) approved by the Development Budget Coordination Committee (DBCC) on June 26.

“However, even though there’s a reduction in the private target this year, we expect that that will be filled out by other nontax revenues such as higher collection from GOCC (government-owned and -controlled corporations) dividends,” Mr. Adriano said.

Data from the Bureau of the Treasury showed nontax revenues slumped by 24.75% to P200.9 billion in the January-to-May period as the year-ago tally included several one-off remittances.

In May, the BTr collected P76.21 billion from dividend remittances of state-run firms, bringing the five-month collection to P77.69 billion.

For 2026, the DoF raised its privatization goal to around P100 billion from P1 billion previously.

“There were some delays. So, we will be putting [more than P100-billion] target for next year because it’s not that easy to sell government properties. There are legal issues with other properties as well,” he said.

The DBCC earlier tweaked fiscal consolidation program to account global uncertainties such the escalation of the Middle East conflict, US tariff policy, and the Ukraine-Russia war.

It cut this year’s revenue target to P4.52 trillion from P4.64 trillion, with lower collection targets for the Bureau of Customs and the Bureau of Internal Revenue.

Amid slower fiscal consolidation, Mr. Adriano said the DoF will not “necessarily” follow the “no new taxes” plan.

He said the DoF will push for new legislation in Congress such as the proposed amendments to the charter of Land Bank of the Philippines and the Development Bank of the Philippines. — Aubrey Rose A. Inosante