Manila: Sen. Panfilo Lacson has called for the defunding of nonperforming government-owned and -controlled corporations (GOCCs), asserting that the government could better utilize its limited resources for more productive purposes.

According to Philippines News Agency, Lacson raised the proposal during a Development Budget Coordinating Committee (DBCC) briefing at the Senate. He inquired about the government's policy toward GOCCs that continue to receive annual subsidies despite generating little to no revenue or providing limited public benefit. Lacson questioned the rationale behind subsidizing entities that incur expenses and receive subsidies without generating income.

Finance Secretary Frederick Go mentioned that the Governance Commission for GOCCs is considering 21 GOCCs for closure, winding down, or absorption by other GOCCs. However, he acknowledged that the process is "very slow, long and tedious." Budget Secretary Kim Robert de Leon added that the government is contemplating separation incentives for personnel who might be impacted by these changes.

Lacson criticized the ongoing funding of nonperforming GOCCs, suggesting that ceasing their funding would render them nonfunctional, even without formal abolition by law. He called for the economic managers to provide figures on annual subsidies allocated to these GOCCs, particularly from 2022 to 2026, emphasizing the importance of addressing this issue given the government's constrained fiscal space.