Senator Win Gatchalian on Monday pushed for a broader congressional review of the national budget, stressing the need to scrutinize subsidies granted to government-owned and controlled corporations (GOCCs) amid rising fiscal pressures.
As chair of the Senate Committee on Finance, Gatchalian said lawmakers must align with the Department of Budget and Management’s (DBM) drive for tighter spending, particularly on GOCCs that remain dependent on government support.
“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,” he said.
The DBM recently issued Corporate Budget Memorandum No. 48, which flags GOCCs that have relied on subsidies for 10 consecutive years.
These entities will undergo mandatory institutional review to evaluate their structure, mandate, performance, and fiscal impact. Possible outcomes include restructuring, merging, rationalization, or conversion into regular government offices.
Gatchalian emphasized that the DBM and the Governance Commission for GOCCs (GCG) must lead in identifying corporations that no longer justify continued public funding.
He warned that inefficient entities drain resources that could otherwise be directed to essential services.
“The DBM and the (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,” the senator added.