A MAC_IC OVmVIB_OF PLBLIC B_ISÂŁ INTHEB'IILIPPI_., ig_,'q..Q84
R_sario G. Manasan _ Ccrazon R. Bu_tura**
STAFF PAPER SERIES No,8603
Research Studies.
Fellow,
Philippine
institute
for
Development
.3
Chief Euonomic Development Specialist, Economic and Development Authority.
National
The assistance of the following is hereby Anicia C. Sayos, Erlina P. Tambasen, Rosemarie Barbara M. Dizon and Juanita E. Tolentino.
acknowledged: G. Ravago,
1.0
Objectives
The the the
of
purpose
Philippines. the
added,
of
on
used
2.0
and
of
the
of
as
economic
terms
Of
value
deficit of
and
this
borrowings_
measured
ratios
to
the
financing
budget
in
attempts
over-all
the
sector
of
also
by
and
in
co_nonly
by
factor
elements
some
of
Sources
the
analyzing
enterprises.
of
problems,
Data
both
the
macroeconomic
This
study's
da_a
Enterprises
of
are
government
the
production is
various in
the
essential
ownership
is
_nd
cited째
enterprise"
services
Issues
discuss
public
review
"public
(2)
we
Public
A
output
Methodological
practical,
impact
Defining
and
impact
goverr_nent
section,
are
two
the
in
the
of
enterprises
(I)
(R)
overview
study
sector
employment,
an
p%@31ic the
enterprise
profitability
and
this
and
sources
of
questions:
national
Conceptual
role
impact
provide
measures.
conceptual
_,i
specifically,
financial
In
to
More
efficiency
productivity
is
and
and
the
(3)the
paper
role
and
sector
deficit
this
public
investment
the
Study
following
contribution
and
of
macroeconomic
address
of
the
"marketable"
hhe
primary if
exclusion
the
term
indicates
that
concept_
control
marketable
enterprise's
of
literature
to
and/or of
definitions
and
of
the
namely: enterprise
marketed
function. is
(i)
goods
and
Enterprise
feasible
and
it
is
째'markete_"
second the
it
thus,
WhAle
some
cover
proportion
of
suggest
tlhat
output
is.
revenue
is
are
two
it
enough
that
Short
above
official
_'
with
personalities. defi:_ed
stock
or
the
in
or
p_-oprietary
nature".,
ter_:,_differs preceeding
from
the
as
first
t_-_e ter_
covers
only
forms
on
and
Reorganization
_"corporate
bodies,
controlled
special,
two
well,
of
legal
or
public
definition
Phi!ippine_
as
emerges
of
limited
recovery
owned
for
what
on
Com/_ission
by
countries, proportion
definition
the
created
law
,governmental
a
enterprises
stock_
and
corporation
and cost
the
most
based
others
organization's
Thus,
particular
p_lic
non
government
in
Thus,
(1972)
"the
definitions
government
enterprise
,1980)
substantial
definiton
the
substantial
Gillis
1984)_
substantial
enterprises
a
merit
realized
a
in
economic
discussed
"p_f_)lic
cover
in
including
or
which_
to
a broad
The
the
type
19S4;
includes
half 1975;
the
"and
enterprisers
(Jones
alternative
conditions
ecosor_ic
least
The
engage_
goods
favor
the
a price,
entities
public
costs
expected
enterprise:
which
that
is
for
excludes
authors
at
of
cost '_ {G_ay
sold
of
dimension
reve_ues
in
actually
production/provislon
additional
the
is
conditions
goods.
of
if
law
purpose
of
functions
which
by under
_he the
performing are
socio.-
The
official
Philippine
usage
the
economic
definition
outlined
in
_espects:
(I)
paragraph
t_o
of
the
-3-
former
limits
controlled form,
by
thus
takings while all
the
the latter
goods
and
of
services
p'_blic
the
Presidenti.al
As
of
of
the
the
government
of
on
and
to
!985,
_he
149
includes nature
Cog.,
would
Boy
the
Scouts
sector
(see
speaking
Reorganization
government has
that
for
_
(now or
'PCR )
cozporations. compiled
includes
subsidiaries
the
Philippines_
Strictly
PCR
of
in
Reorganizati_n
itself
Posts,
latter
services
on
of
the
the
of
3 ).
corporations
corporations
Bar
"other
Commission
_.iddle
legal
engaged
goods,
and
under_.
former of
While
merit
Section
limits
corpor-_te
the
corporations
Commission
definition
owned
Bureau
regardless
produced
and
in in
therefore,
(2)
Integrated
others
the
e.g,,
and
government
classification
of
type, not_
Philippines,
many
organÂŁzations
departmental/minlsterial
corporations
and
production
those
government
does
those
the
to
business
government
exclude
term
excluding
of the
the
of
the
a
a
96
list parent
total
of
_45
!/ (see
Appendix
not
significantly
di_feren%
come
up
on
with
enterprise, PCR
17 Not
_ab.le
list
based e.g.,
has
-
_ ).
an
Mana.._an
been
adopted
_mpirically, froK_ a
_conomic (1984) by
the list
that
definition list.
other;
PCR
list
one of
_Tight p_blic
Furthermore,
government
is
the
agencies
---
included in this n_,_b _ r are some 58 acquired assets. These are corporations _hich ?.he gove-rn_ne:_t has taken on as financiall_ _ dist_<,._s..-_ed or"[anizatio:i.s_ b_t which it intends to return to the private ._ecto_.- at a latez _ime. If acquired assets were included, the total number of government corporations will reach 303.
-4
.._ke
the
_.,.on_s,_ssi.onon
ar,d _,_ana.ge._uent (OBM) therefore,, despite.
2.,2
the
Sectoral
In PCR
(COA)_ For
paper
will•
¢onceptual
the by
System oI! using
cl.ass:i.fi¢:etion
(PS!C)
of the
of
use
.the
PCR
Gross
Value
study
National
list
ear.lie.&-
corporationJ_
tb:i$
Budget
reasons,
4.isc_;epanc&es
government
sectors,
Office
pragmatic
Classification and Est ima.t.ion
i.L, verrtory
conventior,_
_tc,
the
classifying
Phi l.ip.[_i n.e
,
Audit
present
.some of 2../ out.
pointed
-
Added
in
t-O].lOWS
.A<._c.ou nt s
Phili.ppine
Standard
the the
(_SNA)
Zr_dustrial.
.
Gro,s _.-'va! _.._._a,,:_.,.:ie<i. I,(i;VA)Ks
used
to
measure
the
ec<>D.ol'{_ic_ ,2oD.t.<:tb...;t.::.<_r.: ";_f.!i.]overn_:_ent oOz_:,orat_Ons,
The
PGJ;4A.i_e:.:'!_i..r.:._._{_::_ ,_.{V?., ,._,:; th..r..:, 'v,'._.lu.e o;f r:j:zo_soL_t.p_,_tless
the
sum
an_]
of
e.i_...]. .,:_o:.:_:_,_._f;._,.cto£ ";_-c_._t-s _-_uch _as raw
materiels
:_;uig"(!gl..ies:, .-.:,':..__.tainer_..: add !?_::i.i.n s m_.hezials, a_d
ot, hez:
equal before
to
nor_:._.i.nr!,_strie,.1 overhead the
_um
of
't_i_:i., economic
costs.
comf_ensat..ion
of
advertising .q_hus, GVA
empioyees_
is
profits
'_epreciation,
indire_2t
tax_,=s less
payments
interest
receipt$_
_u_.)sidie_-_
interest
ch.a.ci1.:.ab ie
<:o.__tributions,
less etc,
GVA
estimatio[_
.[? _-_m_ he.reon, government corpora.t iom.s .and _terprise..3 are: used i.._._tercha__geably in th.i_ ._tudy_
may
p_tbi ic
-5-
therefore
follow
less
totaJ_
flow
(addition
*_alue
is
convenient
the
sub._itted
_o
by
or
income
aD
on,.
u_get_
since
_TÂŁnaDc to
x;t
by
_._2_gz_,it.ude_.
subsidized
by
exem_,tion_
or
enterprise
t_
the
ial
is
tlhe
conscious
qover_%ment
value
to<_.
On
of
the
than
underprie_.-d
mole
to
tb_ _,
hand,
because
xs
p_blic
cost
s_bsidize
cost,
public the
the
im_>iicitiy
" thro_jA,
_x-faetory
%-0
this
in
s
tax
f'or inst_r_c.e,, _?u_-_!ic
sold
policy
T_:_ke note
2" en-,;i_o;:.:_me,:'.,n ,r_y D',e
i_..s opportunity
o.utpt_t in
other
._s
C_3A _nd
reflected
_ither
in,puts_
_n-ight be
govern_ne.r_t
Market
not,
e_terpr_se
under_ricad
less
th,_f_
_ ta t_eq_<._:
_'C.R z,! _"?,,_5.
:i_he polic
public
output
in
'1"_.
cA_j_i_,.,:': t i v e ..'_ ar_
the
i_comes, %
avail,;:_,le :_et;_
co_.-poT_ations
.co,"_ducted
that
_,hich
giv_._:,the
o_itput
v'_'-.'_. =,_,, _
c,:._._r_.._ cci a i
sueb
approecb
gross
facto_
methodology
b_sed
s_id
survey
accounting.
_o
of
inputs)
shal..'es or
flow
are
Securitxes
be
f_ctor
income
to
<value
inter_aediate
of
corporations
_rom. a
o_
flow
T.._e ' e_timatiOn
approach. .s_udy
a prod_ct
is
ent_rprÂŁse enterprise
ah
a
due
pric_ to
a
_on__;_e,_ s ,. understated, i_put
might
i,_ exempt
-6-
from
input
financial
taxes. accounts
In
this
case,
would
be
overstated.
deviations
might
be
corrected
accounting
(Jones
1981)
Burden
of
no
by
such
GVA
a
estimates
on
Although system
attempt
is
_hese
0f
social
made
in
this
paper.
2.3
Fiscal
Conceptually, between
the
lay
infusions_
Implicit when
the
treatment goverr_ent a
price
its
when
the
government
the
output
price
enterprises
are
fo_m
natural
enabled
to
of
public
for
the
enjoy
use
arise
of
capital and
control such
supernormal
(i) tax
when
costs;
inadequate monopolies
_quity
preferential
opportunity
earn
explicit
enterprises,
(2) the
by
government
corporations
exercises of
resources
enterprises;
social
resources P'_blic
national
government
sector
of
transfers,
to
public
the
current
provides
corporate
in
advances
_overnment
below
government
and
to
flow
enterprises.
subsidies
and
of
way
public
on
other
subsidies
a two
support
i_.plicit
outlays
is
claim
and
Enterprises
and
government
subsidies
loan
there
government
enterprises requiring
Public
that profits
the at (3) over said or
In the Philippines, except for a couple or sop government corporations have not paid dividends to the National Government on the government's share in equity. Furthermore, there were instances in the past when net lending, which is equal to loan outlays of the National Government to the government corporate sector less repayments_ were converted to equity shares (Amatong 1985).
to avoid the
ios_,ses despite
same
flow
time_
of
suggests
%he
dividends
of
implicit
implicit
way
of
as
to
t_ans fers
oz
the
no
attempt
between
data
0_
i_ th&_
sector.
corporat.ions
to
Thus,
the
fiscal
burden
that
study
consist
of
current
this
(_.} equity
co[_tributions
the
first
two
d_ta
on
2_ 4
Efficiency
Me_sur_s
R_axdless
of
the
_ector __nvest_.t,
on
(i>
co_}_>_ents
i_t
key
com_nent
and
the
are came
mac r oecono_ie fiscal
sector_
the
and
of
in
transfers, Data (1985)
on
while
OBM.
public
ve_: i_b los deficit
readil.y
measured
lending,
the
the
Government.
Amatong
from
the
_._yn_ent s
budgetary net
pu/)iic
r_sources
nO
National
from
t._.e .!m_.%c_ of
e:Rploym_n.t_
tax
t.he
meas_._re
ia
._,sactually
(3)
_f
enter_rie_
to
to
impl.icit to
of
there and
government
as
burden
made
_ith is
governme_._t
Also,
interes._
Jones
enterprises
p:_blic, on
of
loan_
d_aling
flow
a
form
enterprise_
net
to
dJ.vidend_.
fiscal
the
ris_
objectives
p,mbI ic
defi_ed
enterprise
said
At
government
explicitly
pttblic
balance
pap,_r
accessible
of
give in the
of
and
the
government
this
governmen_
pursuing
by
is
the
, In
one
Fiscal
enterprises
publ_G
taxes
paid
government.
from
the
objective costs
ineffi_._iencies. also
repayments
that
no_co_me_clal treat
to
payments,
COSt
enterprises
dividends,
in%crest (1981)
public
resources
financial
gross
_
enter_._rise like
ÂŁ',DP,
foreign
de,_t
and
mon_,y
supply,
enterprise
regardless
sector,
enter'prises
purely
they
have
is
the
utmost
of
opex:ate
if
it
look
at
performance:
(i)
measures
factor
Factor
Labor ratio ratio
of
output value
to
added
slhould
capital
haw_
to
used
pri._ar.i 3_), _'__± ],_]_, Ie productivity out._,[_t
or
cost°
labor
i.n
paper.-,
ent.erprise and
(2)
as
the
as
the
or
.input,
of
_ ._.ts
terms
Of
L_bor monetary
number
rate
value is
added
of
valued
as to
i.s
ratio
th._.
sum
at
assets readily
Final.ly, the
on.
howe_er,
fixed,
_b.at _
gross
of' .return
stock
of
capital
investigators.,
defined
value
Ideally,
the
statistics
__ay be g_oss
....
booa this
the
defined
labor
capital
Several
depreciated
f_c t_-;_-;[npu.ts.
this
in.pu_
_erm•s
as
net
because
be
input,,
l>e :measured
in
ro].e
.,:,f .gr<>_:._s,...._',itpu¢ or
capita.l,
ti._,._es,the
repla_,_ement
should
measures
to
in
d__:_'_J.z_._,d ..%s t.lle ratio
input
it
Mea_sures
_.._,._.[_er_.,,_........ _
_dd_d
of
pub lic
may
b,e measured
value
wells
ratios.
9ross
:'[.nFut may
as
or
sector
pur..Doses
Productivi•ty
g_'oss
public
a positive
of
productivity
of
play
p_blic
Objectives
the
productivity
fi_"_ancia.l prof±t_bil.ity ,,_o4.1
to
.For the
two
the
objectives that
is
of
whether
co_mterc ial
importance
efficiently
size
of
non-commercial
ecor._om.ic development. we
the
regardless
have
whether
of
total of of
gross all
-9-
In as
the
this
papers
r_._t.ioof
manner,
we
ratie
of
we_ measu_:_e
GVA
to
measure GVA
O_._r D:_sio
to
in
't_he same
productivity
t3_e bOok of
productiv±ty
compensation,
capital
sources
labor
value
data
of
are
as
fixed
the
the
as_ets.
PCR_
COA
and
SEC.
_,4. _
Financial
Profitability
_inanciai used and
pro_titability
yard;_tick to.
Ratios
ho
,_a.uge
.,Dro£i%;_b_,iity
measure
is
In
c,or_ce£D, ourselves
with
of
to" total
assets
,worth.
Gross
eh_rrg0_'_,.
]_et
two
perfo)2n.'.ance
Numerous
ra?._!o.,[:, e;',i_t,
_%_ I_ J.I}:_co_]e tI._2 net
.r0ost comm..only
enterprise
el-f icienc.y..
c.fro._opro_it_
the
f ina.nci_ i
th.[s
,indicator_
p_pez,
;
and
(i ,!
rat.it'
(_.) ratio
profits
:i.n:--'_:,_:,e _.,'.-_ ('_) iS
we
i,n
6eli, ned
(
a_
I[
of 9"S
)
net
J,_.-O_,l_, " "_"_'_"
,;:<
,_a
_:ne;:_,a, ure
c,.f
p0_b iic
ent.erpri_e
,p_r_:_ ..... ........ <_:,_ .......... ,--,-:0 _ f_[_",,,:_c,, _,..%._. Drof,itabiiity
profi_,abllity
iD
non-
cOmpet.izive
pro_.i_.s
may
entezgrise "above-
,_io,e:_ ',_.ot t,_t_e
non -
_;!, t _a_.,;_ O.r_.._._'_, high
r_;__,t, tru)_y operat._,D:z but
normal,
ratios
prof_ ts _
reflect ma 7
an
commercial
f_nan,:i&] ef ficie_.t
:._iz]ply _'esul.t _._r is ±ng
•have
from
from the
- 10-
exploitation
of
:.'_nd ($)
entezpri,_e
:[.inanei.,%1 pro£its
consi, deratio__
implicit
c,onc-es _io_:
{_it_
the
granted
_s ;_J2_¢>pol, y
do
:r_ot
take
s_bsJ.,dies, like to
the
_%_>_0,e_ua Ut i_2f,_ in
power into
tax/ta_-i:ff
public
enterprise.
di.scues,i,,_uns o,f
public
e n t,_',f.pr._-_e effi_iency,
•t_.<i_d&t&
il_:_.n:_ !;,_::,e <?oD%r-'--_issic,z_. o_%:A,_d.i_ ['C""..._.._A}
":_,, I
5i_'i:_.L>e._: _<i<'_iiS6<':t<u";_.I.
In
ml.d,!, _ L9_:_ _._ _
Eli [;'t:c:?C_',._r__ILC._:"_.
tTi,,_' ?C._
_.r,_veLto:C 5, _-
,'z-f
'?7_bl.e i ,a:,:.d, _%_t>per_,.d._x :..,7_ible i pre,_e._t _;i._;t_"ibuti...:.n o:i:the Z_
[%4.% cc_:poratL}_on,_ i.n
_oV_.t"r_:le..z'_t
th_
hhe
sec_.oraJ.
PCR
roster,,
'terLL_,_ <'f 15'_._)O,I','t.,i:..::_.;_ Ser_':i,£:_:,.S SeCt.O/" g,a_.t_Le]:'_dthe
1:i, gges%,
sba :_e
co_2o'_ati<_._,,_
_;._,t,h.250, 7
b e,[!,on_3 in_
pe_" to
man;, f _¢:t,,u_:,_ :_,[_ sec %o_,"' i,:_,c l._':d es 9 o v'_.:. -_nme.:'_t;c o_po _cc_,, t i _'_'_ _ _::h.i le a_:c_o_,_:_t_
:f_[_r 'i5.9.
cent th.is
of
government
hea,dir,!q.
19. '2. per the
cent
f_i.,_;anc, ia i
: _%lec%.ri¢.i,ty. _,'.4;_. and
water
The of s_ctoz' has
_he
- li -
_IgUII_I_ '
l.a
Fird_-_
1
1._
_!I{llRBtlIi_/
a
h3
i
I)I_THBbTIIII?I
hl
- 13-
only
percent.
_.4
3.2
_. Economic
Gros_. by
value
sector
Table
for
_o
In
added
the
terms
£_e_ _nnum
to .20_9
per
e,-w_'' led of
of
water
;
c_.nt, per
The Domestic
in
._.6.per !984.
financing
is
corpor, a_.ions 94
. 97-per _--
ce!_t
in
gas
and
GVA
in
with
cent .i%84.
water' 1985
o_-
pces_nt_
e_terpr_se
_he
at
_?..14
_ompared
of
e,lec_rict_y_
S4.S
gro_b ga_
S ,_orage,
per
_?er
gr.owT_b sectorz
arate
and
in sector
period
High with
by
cent
and which
annually,
./_!e.,c,_d _ou_th
wi_h
a ra_e
cent,
corporat_
sector's
i.ncz.eased, fr'om cent In
%he
over
at.ion
and
25.._ pe_'.
Product at
cent
co_munl¢
is
economy
fo._' GDP.
_ollowedl
governme_rt
p_ke4
year
_,:_.uf._cturin@
of
, corporations
public
the. _otal
5S_ '2
b_.
respOctiA_eiy.
_he
a__d quaz_'ying
tra__Dort,
of g_Owth
_A_
oJ_ -_%,'eaverage
._er cent..
exl_n0ed
Added)
o_ , _overnment
t_an
b2" _inir_
175.6
Value
_ ' _ 1•9715 -'. !984, _erloo
i.e ."grow-_.n:_ faster cent
..(_=ae_
Contribution
in
•terms
sector public secto.rai
Government contrfbs.ted
3.0
198._ and of n_st
!_e.r cent dropped
share
in
GVA, in
58.4.: per in
1975,
3.66
per GVA.
government
!a_d , in
cer_t.of
_984
in.
_counting
1983..
corporations,
Gross
to
by.
_
in
.sectorai
dominated
enterprise
and.SS.. _. per. cent
share
(sea
for
_4o"_
._r
electricity_he Table
sector' 3).
_
!]]_S
_)__
t_).
_"
_]
l_]
_
_
_"
i[;
];
_
_
_
"
]"
--
]
1
]
... _L _" i_
?_te ,1
E C T J)_.
], AtiP, ICLL,_.q{E_ _61LE_TAY _ FX6HERV l|,
I4][_IN8 i 0LLqRflV]f_l
• B. REI)LE_T£
[cs7_
Z_.75
i_7
;_7_
_97_i
,;9_
/_%t
tV_:
. Jo_8
_,i_
,_
,_
tg_
i9_4
,3A
._9
,_8
,_
,_
,_Z
o5_
,_,6
,N
,_
,_
._
_,.33
1,47
8;_P.
_5I
-, l!
,J_
-,M
.i_,
.!]_
,_
o_
",E3
",i_
078
- 16 -
GVA
o:f
constitute GVA
goverr_ent
the
of
the
bulk
corp<>ra. _ior_,s
(.4_8,.:_.i>er ce_t
p_:blic
enterprise-
corporat.ions
in
electrioity_
contrik_uting
30
71
GVA
(see. Table
in
19£_4
gove:__nment
corporatior_s
GVA
of
.government
i.6
_i, er
,
all cent
of
GDP)
total
4).
total
in
em.!?-i,o_ent.., in
and
seet<_.ral i ,,,0
a_:count
for
42,41
of
eqtzal_
to
Se,..:_to.ron
. the
.
_%cono.my
jeb_ This
Emp!.Oy:mex:fi
i,s
r_-_",
.
v_ry
srt._a!i .''
I_%
..... _- O _c_.
19,cJ2 e.n.d _eiti:_.! at. 0,65. "v?er cen,t
in
]98_.
(see
c.c_;.._._..o_t.._caS in the <_,ater s,,_ctor accounted empioy_ent
ar_e the
i._.i97_, in
ce_t
of! only
!_84 _
enter_._ri _es a=ectol"al two
gove.r_mlent
for 31..5
I_
17 .i
per •the
contrib
corporations
<,f i:.ot.alem_ioy_ne_t
in
the
per.
cent
uted
emplo}_ment
In
el._etr.ic_ty, cent.
in
of
1982[ and
f.iDancing/ho_sing
S_,ct.._)rswhere
e_r_.q)_.,_yn.._n_., is sigi-_.ifi.canto
c_,_'nt
is
cent,
per
S_5
of
p_r
0_77.
_:,ez: cent
_>er
(this
r_z_financia!
ho
_ra>i.. ic
share
on.s
_pterprise
:'_u_it:eri'.:creased
ee.,_or,
These
15
hext,
,in !.9S4 (Tah..ie 5).
..... gas
top
total
fo!llow
public
Th_
."': ("
emp.i0vraeut
of.
government
,_ater
total
corporatJ,
1._'_6_ i:_ui',_!i_ enterprise
cent
of
and
._m.;_.,.._t of _,_u_-.i_cE.nterp_.z.se and Inv_st)_en.t
_.b. _', eontrib_
i:_ 1.984}
sec<_:_orwni.[e ga_
p,_,_r¢=n,
± _:,_ financin_
approxi_atei_; in
.public
th._
perlo_
enter_ri.s,_
_ine other .•sectca'._ is sector,
less
%hen
_.
the p_r
_
T_le 4
_
_sT+timTmm ePmmmvmm_
m:m_T
__r_
:_mS_ _ ETeB
tZ, xt++Itm _mman_zmm
,ee
.N
,H
.++
,H
.04
._+s
._m
°,79
_._
I'_,, ¢,[_'(_TI_
.O}
._
,_
,_
.lI_
,11
,0?
,9_
_;l_
.6_
|
•
-.,,t I
m. _
o,_
VIII. Fll_lHB
7Kl|
• .
_,_
7.1.t_t 7_._ ,
E_Tm_
._
,._
,_
_
?_13
73.71
_,r_ _._7E.O_ 7_.P7
._
e,m
??,tilt
71.11
.
,.tit
,I_ .-o_
Ig_ .
._
•
._S
.l_; :._Q ._. *:
.
_.9_
.
.
,l_
$
..
.
- k8 -
seces_
me__ he TOP W _
_oe_,m..i,,,.,.,.,.,.,.,.,.m .,e
I i
I
_
x.
_t_E_FIHET_ I_
e
-_
_'rr_ -._.
_,_
_
e_
:e_e
_.
_
-_,_
- lg -
'[,z_ :6
,,
,,,,
.::
,
::.
,
1
_
-
invest;nent of
the
are
20;-
da_a
)_5 major
Of
government
non-Zlnancl.al
not. available,
corporati_n_
governmet.,t
However,
capital
outside
corporations expe_di.tu_es
of
!
the
15
:97S
major,
non-f_nan._ia[,
.- !984
ob_er've
are
t'i,at
governmenh
progided
fi._ed
inves
co_'.porations
i:r-_ ,.k -.,..4. _ aw ...... 7 tment
from l which " " tn_s
of
fo=
9_Oup
we of
i
qovernment
¢.orporati:.o_
domestic
represer_.t
c:ap:[b.al loinmarion
co_.'2orati:,,r:s .....
and
i5.7
::-e:_" ,_r,_..%_. _f' _uress
i.t'_ "_h."_'_.._ i-_e _-i..u_,
;i,_:_: 2,_ _.I_ t,[on_ h i _
t-,,, :, ...
_a t i:o.,_a I.
[
oOve_:'_%u,:eD.'_, hudget.a_"_., v:Eia::.l_:s &:_<::,:':.:._ _."_
V v,.. _ ''" o..._' ,_:_'_:_idi _,. 'i c_ ',_''''2 .. ,,. i_he
,d_.,_-_c,,,e•" _ _ _ld_:.,,,_. :,,_-._,_,_._,.,_,_.,.;,,.,,,,_. _.,-. ,, _ ,,,_,_, ,...,,.,,_,, with
I
a_:. ave_'age
annual
_"a._e of
g_._o_th <:-,f 40,9
p_r.
'cent0
i
C'.ompare
this
cent
for
cent.
for
per
cent
per the
c:ent
of of
n_t.ional'
the the
euzrent
GNP,
of _er
other
The6,,e
ye._rly
• '" nat.k._na.,.gov_._'n_ ','_,
for
co:n..po_ent
w."_.th I tha
the
' Ne_ fiiscal
fiscal
_-,_:i_.5
per
,
_er
-,._ 4 .. 6
_._.nd :_._,:_
.._,e_,,_-,-_._...._.,_ is the faste_._. 'gr<)w_n 9 b_2:_-d,%n,
3:t .... _:_ ":_.±_.,_S-d=' by "'%,_,
a.vera_e,. .,.
CurZent
r_f._,_cted
in
.distzfD<_tion
bu_'dein of
transfers
,_ r_s... _pe':_d_tu _......
bare_..y i_c_reased
;;-_oveme__ts are percenta_se
ra_e
gore.unmoral,,. t.o,t.alz'ece_:?t$
, ear <_n the y _ hand_
-
growZh
,over the
of
t_aD.S:fe_S_ On
the
the
changi_g thr_e
pattern o.oYapone_ts
£_ul::..lic enterpri.._es,
:ccounted
_or
peri, od.
3_)_.7 p_r
In c_nt,
].975, equit_/
Table.
7
_PI_AL EXPENDITURES OF 15 M AJ,OR NON-FI_AL CORPORATIONS AND _ROSS DOMESTIC CAP,_TAL 197_-198_ (i, n m i11 i_ pesos)
_OVERNMENT FORMATION_
Caoital Exoe_di_u_'es _f To_ 15 Gove_nmen_ Co_oorat io_ <i)
Gro_s Dome_t ic Caoital Format ion (I)
197_
7281
51348
14.18
!979
9518
67687
i4.06
!980
11079
81153
I_.65
i98I
15_93
93_61
16.40
198_
1502_
96521
15_57
!983
19a_9
10_526
18.97
!_84
15_2
1008_0
15.16
1978-1984
9_93_
593316
15.66
Year
ac_ce:
NEDA
(I>_(_) (_)
•v_-_._
o__r
_T._._e_.
l_ _._._m.__'_ m_x.e_ __ -_ll_
_.._=___-
._.
_,,_._
_.
.
-_ _
_
_
e_
_
t_.s_ _t_)
of
-eu_
_N _).ity _trib_tica_J are fr_ _t_
_)_') 1)_t_ o.)
_7"_
:_
_v_rage _r_tt,,-_at#
SDLI_"_) _._.'r_nt fr_fer_
.
_._._
•_,_
_-._
__
11_1_),
_,%
'_;i_-
_oo_
_7
_
•
_s
.A_, ._
_'_
-_)_-
_-
of
],7_
_
. _m
o_ _.
_h
,_
-._
h_
.);_
_ho
-_.
.,_
)_
_, 23 _-
infusions
for
per-cent
of
cu.r
of
56. 'J ,
the
rent.
(see
shift
budge_a_Tz_ t_an_rer
•contributions cent.
4S_3 Table
from
nat _.onal.
a gover
deficits_
_r :cent
is
?._ 1
cent
9).
In
_r@
o_e_"%
n_en%
_nd
a
.Ls _o_- w_ ll
Treasury f©_
accountln
t=eat_ng,
except
g en_•:.'_-a I,
have
or not
therefore_
'_
speaking in
to is
pa;_£
trensferred
or
Loo'ki_'_g in
the
different for
per
_n
1975
en_.er_ri_e th.at '"th_
of
the
f_eC_l
OBM/_a%_nal _T_e[ .r_es0_
d_,vid_,,n<[_o to
9_,_neral.ly
_',e_
the,
fiscal
biggest to
of
ep.te.vpz'__e_,
,no_ di_t.i__gui_h
sectors, the
way
_.is
<_._%,e Na,ti_B_a!
J
have
converted
the
per
c_,,_erv_ .zs a
w.lt_
p_.._, i.}c
lenai_g
c;c."ver n_e_, t
that
_t
accounted cent
To
i_._ _._e _
it by
net
_i._to
t_"ere
].. &_-:ding eq_._lty
'_ur_.e_ _e _ha_*e
the
cu=._e_% Nati_al
_
_t _:ietl 9
_er_ _.£n__aP..C_. ........ _-_,. c <,u,_t_. we,l_e
eo.ntributions'""
o£
!-,ubl.:_.c
¢_sel-v_-
Zn
.e.._te_:..(:ri_e_!.
thaz:,
fr_om !97E
36. _ pe_" cent
_ise,._.[_y
from
corporati._n_,_
exg_,_....e<_i _'_'_ _' _.O £_e _ep_i.d:
the:
4_.6
i,_Ub ,i,_.<.
com_onen[_s
,,
pai_
W!',i_e
Gover_'_nent
9
s_ha_.e eq_ity
_
h.a8 pc,_i:_ted o1_t
th_ee
does
co_tributiuns,
lendin
.i_0..l
contri.b,._t.icn"._,,:_ as _.,__,>..,.,_.,.,_i_!!y ._._. .%,_a£
Co,_t_'.ib'_t ±oh,_
which,
cent
:_<hat._e
framewolrks.
,
capital
_he
le_x._e_!_.<-:,_, _.s..,.c:_,..;.,, of the 9
two
i.n 1984,
t?._,_.__._).re cover%
(I_.5}
equity
fo_
for
net
f_nanu.ing
;_%_.atoz_g
lendi_g
.per
se_se_
d!.st..l.n,_._...lO,._ an._,ong.._i_ t_e_..t.hYee b urde_
net
b_irdes,
S
per
and
to
1977),
fin,_,:n_'_nr4 197.T? (2'9.1_!i fo_
.19_I
- z44..
Table
•PERCENTQGE
YEC(R
:,:t9':/E,,
q
!9 ,
DI,_TR'_BUTION:OF FlflC@_L DURnEN i
"Crar_'F ef',_
iZ,, 0_
•:ts?:,
9. e.7
•,1979
._,, :L_
-I--= ,_- COMf._JL_'E, NT,.9DF' THE 1975-1'_a,4
bu_ _o_',
78;_ 57
e._,.5_
7i.
,8,1
TOTAL
.4,. '""
i."_7
__. ,86,
logo _
6.. 03
1"=_82
?, "F_
!S,P--_
_,, i !
46,,_.29
.4_. 60
l_.
00
7.30
&6_ 93
£_,.76.
1_,
80
.73i_:04
9.5'3
_ee. Be
i981
19.75.-. 1984
84, 04
Le_cl i _g
19,,24.
l_.
00
.100.00
- 25 -
(41.57per cent) other 4o
years
the
for :9s4
lion'
electricity,
and
44.2
gas
per
_8.6
percent
Table
IQ.
s_ share a_d ]
cent[in in
o_
the
water
fiscal
(44.04 per
i979),
19_2,
p. er cent)ii.
4003
31,9
per
per
cent
_rd_.nl cen_
i_: ' _-'_g8
centi
:in
w_nt
i_." [_'S_,
l.gs3)i.
S_e
' i i
_he
15
corporations, more
on
than
public
majO_
two
the
reached
80o 1
share
per
cent to
ma_or in
National.
1.975 -
of
_eflectiv_
and
_f
the
financial
._NB (see
._able
.ii)
in_iv'_d_I:i
fiscal
pre_ented
I_.rigation
_he
_ .t_
whi.eh
are
S*_._re
I984.:,.t_Ir
ce.rpor_,te
t.o the
corporal.to
the
Government_ averaged
in
of
burden,I in
y
_:f: the. '
'
Administr.ationare
_he
government.
1984,
Government on
!?ea_
assistance
DBP
nat.lonal
ib_raen I
The-%:
cent
government
sector"
r_cÂŁpient8
im_>_ct
27_6per
sig_i.ficar:tly
_ and
fiscal
Ho_,ever_
ccrpŠrati.ons
enterprlse
Ph.ils.
total -- 1983_
1.9_4 _.,a_ :......... tlcUiarLy "
contr_.bu_e
_ov_me}%t,,,,
consisten_IMc_Dt'_,E_d
_overnme:_t
Government
p_/blic
the
1975
national
in
hand,
i.n 1983,
f in::ncial I iv--s+r;_ ...... PP e"_" sector
Of :
from
piu_etted
increased
other
_hi_ds
er_terprises
non-financial
fiscal
The 18.2
per
have
had
perfor_nc_
bhdget.,%rY een_: [
:s
and
burden 21.3
Of of per
cons ii_eraDle. the
public cent
' Natio_l _pri_e
O_
nat}'ional
-_
0_:
_'.*_-'__'_,_
o_
_I_
_.
_°'_
_
_'_
___._.--W._-_
_'_
___
_'_j_
_0_I_
;
_¢o_n_
_°_J_!
_oA _
l_°_F_v_
•
• I l
"
L
_ "_
_ l
l_
l
l
!
_,._,_
_
_
_
_
_
l
_
O
L
_
._
_
_._
..
Year
_._
_.
_,_'_
_
_
_
_
T_
_
_,_[_
i._-_-_,
_
_m,e_-_e_.e_ _,_
__
_97B
_,'_T,_
r_,
._:_;_
_:e__,_
_[,_.."_ -_
8
E •
z
[_'#9
1
tgt_
" II
U_
C
I"
_
zv
.
v
0
P,
.
vz
-
_1[
"
¢R_
zz
_,._
_:_:_
_H_
I_¢_,_
_%_
_o_
._%S¢_,__*_gO
_6_;2_
__
_
__
.eq
t._
_,_,¢e ,_
t_,_
_.,_-_,_ ,,_
:_ _,_
-_
_,_ _:_
_
_,'_._ _
:__:.___ js_ _ _
_._
_
_._
I
H
Fidm_
_[_
._
V
14ram-
U_
V!
YH
VIH
_om_
Zmmmmm
_ _i_
.
IN3
m _+q
ram+
m+m
++tm.mttmm+.m ram+
mm
mm_++m_ mm
++_m.m +_m
_++ym++.+r+mmm
.._'_._
_m+,+mm
m+,mm+++ +_+.++ ++m++.+.m ++r_,m,+m +mm+,m+_,'_om +,+_+.mm+++_.+
+
|
mu-_++++
m+m,m
+ _++re+l+
mm
m Lm,+im
_m
+t,_+.m_ .m ++'++m
tmmm.m _+t+++,+,r+-+p-++.._ p,,_+++,++_q_m 7mm_++.m +:__+.+_ mt_+.m mm
,+++
_;.m
_m
+m
=,+
mm
._mm
J_,,+m.+.m +++_.+.m,m+m.m+.mmmm +,,+ram+ +m+m+m ram.++mmm+
T_
_
_
§
_
_,
_-
_
_t_-
_
_
_
_
_
_
_
_-4]g_
_
_,',,_.a_
•
_
_
_
_
¢
_
_
_ :_ _
fl
_
_-- _!_ |y,_ +
_
++_-._,,
_
_gg'_
_ ;_g_i_-
._ _
_-I¢_&'_
-_.-__
_ _
_
_
_
_
-':
_
_
_- _'_ _
_
•"_._._'._ °_:'_._"-_,,'__ •
.
._..
.,.
_
_
E
_.
_
"_:'.__
.
_
_
_
_
.."_.i _,,_ "_. _
_.
_
_
_
e_
_._
_
._;
,._... ,,._,_ _
_
_
_
_.._ _ .___
.......
; . . .-
_jo_
_ _+_+_+P+_u++_:_ + _.._
t+_ _h_
F_.+_
9u+_+_
_p_ _on_pil--
+ r-, _++
2_
Dmv+iopmmr+t
4o
P+_t i+_ai
..m+ Na+io++at
_+
of _',+++ +_-hili_pim+m
Elam+rif
+_+ Met++opo++ita_
â&#x20AC;˘ ._......
OPf+i_ .
teat i+_
Admtnimtr+_+
+_ +++l-_ _+_:+_+ _%+-+n. __ -_-
N_+t,+
TOTAL
7339,_
+418+53
13757+5++
295+ 50
35_.-):9, mO
++++L37 ..... m
+_92o87
'9+++. 5_
109 +._ .3_
-+a+ P+_
_00_, 5+
.+.595.+_
-a5+7+
+470+0_
-
Dm_+,m!+_+e++++ Corn+tony
_t+ilippine
.
Bmm+
ion --
_f
_at io_'_.+ ! _
Wm+erwor_.m
_- _P+w+rm+e
..
_f
_udwet
Mar_m_t+
Bymt+_+m
.,7_
- 34-.
qov_n_ent
expen_4.itures
197S', cent "
.'
cent
1980.
In
of
national
of
nat_,Onal •
_0,_
per
diec!_ned such per
Du_etarh_
_n
., [
•
until,
:
expendi%..UCaS, a_d., • , rece!p'ts.r
they
,..o_.,
teethed £n
_,5
[ez
: ,.'._b__se'. ratiG.E, I ":
"
:R[,9
per
cena
....... :..,
_-':,,_+_ i:,_ 19S4. _h_.y
i_u_rd_n •0_ publ.ic
government
fot-ward
are...,then
,,...
zC,<;n',euup
_ga.[%
the
_._he..gove'.,_'n_nent has o_+ public
(_,.)"_ z'_d.uctlon .i..._e_s l,iMe
re,_enue
_,nte]:Dr_ses in. relative
wa_ Sh_res
services
:.._pe_at..£-,_g expenditu_'es,
_n__7],_xises..may
b_
and
c:_."c_,_y may
be
w_'_ich
c_eation._
z'aisir_,_pe, rf_,rm_nc_ and thus o_ and
' { 2)
d_.fi.cits
ai_d,/.or_r_ney
det eri_.,rated
perc,0nal
o_
gove_'nment
b_2 bori'o__n@'s
de¢.ade_
_,:,._.3 fJ_:.r ¢_-nt
expen<iitv..res
into; higher
financed
last
burd_en
pex
government "
cent
or.,, other
inbbe,
_.ur.4_n i.s 5..1
o.%"t.ot._! <-._p_ad_..t_.:r_:,s end
•The
pa_-se'._
the. f_;scai
"'-,
cent
d,2wn
_n
governme_-_i
sign_fi, can_ty
that
ri.@spectlvely,
1973,
in:,.'Fe,%sedcont.inuousl_ and"
and. Z[_venues_
the
o_
budge_.ary
tr_slat_d
iDt.o
o_f_e.._.e-xp_Dditure .maint e_anee
inc._eas.ed
and
net:ional
±/ govs.rn._.ent 0.9
the
deficits_
fiscal
burde:n
tih&_-" S.i_ i_czeasel
The t_'ends .in .the re wel_ dc_.umented
A
comparison
of
the
_u'_d.governmentdefici%s
@.e,. :¢,e,_,s _ .In the
distr£bution in de Dios_
[..of
b_d_eta_y
__}row_h rates indicate b_:rden
,]over_e_% expen.it_res _ ._et al (_B.8,4_)iand L_be'ct£,,
is
- 35 -
usually same 7
a._sociated
direction
out
years
in
9 Nears
1978
and
1979
the
[,2'2 of
total
the
been
posted the
wou2d
have
been.
instead
ce_t. ,-D.f .G._?
The
less
deficit
currency means
currency
w_uld
_inde._ discuss!on equ_]
to
_hec'e. _,_,nt
o_, _pez
z._ _lo_) _er
,_1.at.i._:n_.__.i 9over._,%.t_'t_n*:t ,i_fi.cit
in
re¢_n.t
by
m_ch
financing,°
consequence_
t'he
the
the
w,:is
To
spite,.,of
the,
a _.t_ch
con_ercial
banks_
level
flnat:_c_,,:,.,_he
,_'_re than
of
had
to
demands
any
the
•however,
increments
_'_'iii igS'o,
wit _
in
government
public
,%i_lyza_
_l.Danc_,f,g'=" • '_ ". t_l_ bu.l.k"_ of ho_ver_
19SO
_The
creation, of
_,.,_,
the
.--_tillthat
willingness
_'till
finance,
of
years
( ].986 ),
were
creation of
in
to
half
was
of
I£_S311and. 19_4,
bud_.e.t d,'_ficit equal
the
_ _ ,. By
deficit
renault
:_._t.t_. out:
_9[_0,
_urpl.us
Remoiona
banks
than
_is
budgetury
(,see q_.ab.le8)
.a_d
Commercial
large_
the
aggzegates
La_Iberte
bud_.et
of
_he
fisc_._J, b_;rden
J::_d_#_._ts_,t5;i'h.,_,_s
!979,.
a •budget
arel
7.:_" t.h_
Corpora._io:i.s
yea._ period
.i;n_c¢.. of
_oneta¢[?
the
b_IdTjet (_eficit,
ten
'!is _trum .in
!3),
._ i9_4,
.i_ 1978_
for
This
in: _,he
Exceptions'
expen_.J.t_res,
Also,
GNP
Table
1975
._overn_nent
9overnment
have
on
in
movement
deficit,
Compared,.
(see
average
times
corresponding
budget
the
burden
Of
the
of
on is
witha
'to
tO
:.resOr_
othe_,
p].m_!_d
exc[eeded
absc.rb n_)nev
t_,
domestic
government far
in base
pxoVi_%ed
i ._.,i •,, i_ [_8_
_he _s
'a and
-
36 _
Table
COMPARATIVE. Gt_]WTH RATES NATIONALGOVERNMENT
Yea_
!97_1975
OF _ THE FISC_ _U_N,,N_ _IICIT_ 1975_i_84
F isca I ,,B_#dQn
!47.15
iB_d__9_ Def ie it
_7.43
1977,1976
10. 76
21.41
1978-1977
2_. 49
-24_
11_B-.1979
25.:3_
B9_.35
_98_-1980
,5,_.05,
258,61
19_-1983
16S. 69
._._
_2
- 37 -
19S2
fell
_ational base
far
short
government money
source_
creation
did
declin_ the
government_
As
accor_odation
was
internat.iona! payments
3°5
Other
[In
credit
addition
government
in , _,
domestic
source_
as
borrowings_
Demes_±c
may
credit
same
to
an
other
i.e.
time,
public
increase hand
in
_
impllcetions
on
Otller
Comm_r_al i '_no.ugh :'..to
the
national
_'_tl.re bL%z._e._, of Bank
holdinss:
to
of
_.hei
Public
gover_tent
of
external
that crowd
out
private
debt
by other
/fo_'eign
._nte_prlSes 9_
%0
t_e
borrowings.
defici_hs
borrowings foreign
public
otherwise
credit
._nd
exterr_l
of
e_terprise overall
f i_a_Lced
system
as
would
;En_erp_i.se
.contfibutiO.ns_
are
banking
_orrowings
the
such
nearly
the
w_lli
foreign
souroes".:of
to
of
de._ficits
,_omestic
sector,
not
Central
national
f..r<._mthe
the
but
leading
borro_in_- 5
private
credit
!of Financing Deficits
tO
One
to.._he
°°'
corporation
repl,gce
o_.her
_u.rn.ed out_
1983_
Sources
that
requirements
placed
in
holding
to. suffer.
somewhat
i_
Ba.nk
liquidity
rese_'ves,
crisis
meant
had
Bank
accommodate
Central
....t_i$
Central
banks,
of
may I also;
creation.:. may burden
On
have in.
At la_d the _a.ve
the
le_g
On
the
run
It bOrrowings
is of
unfortunate government
that corporations
statistics are
no_
ava_b"_,
.- 38-
exGep_:,
for
_he,
_o_pQzations,
15
major
However,
nO_-f±nan_.i_l
Prime
MinisterFi=a_%a ,
a
re_e_t
"the
speech
gave
" _ov%r_ur, ent
recent,
years
domes.%ic
up
pub lic
o,_standing
to
debt
external
:rots].
some
corporate
to
i.n this
sector
laid
abo_t:
p_lic
Tot.el
_'inancing
is
per
bo_i_.qs
3,2
_hich
....
:" -
pointed rea_;,oss
Of Of
ten%-
of,
_ .....two
-thirds
o_,
i.n
outS%_di_ fourths
o_
15
are-,p£e_-ented t_le
lS
GNU.
at
%'0
n_..,
el.aim
three:
cor.pGr_.tion_
averaged
' _'i_:_t.[ C:On+_ or_
'Pbe
a third
.regards.
.o: t/h_ ,de ""c '_ - .
Ta_%_
co_p_,tions
in
debt<. _
c.$oveznment
14.
has
_about
_o_--_ilnaneiel •
(1985)
i
_,_Ication
and
financing
, government
.qover_%men t,
Ne_
external
_, 3 ,_,_r:,, cent: ,>f
_
of
_HP
_.ot,_l,, fina_cing.
eo_es L_.._. "' .... :"' boZ-2ow_:%9_ . .
riet
per ,,en,. of <_+_pi:_al
is
e_'_nditures .,
o_t
that
9,._,_erDment ,_o_[,o,_ at_n_
,bOK row
other
than
ii.:IBncln_ ,their
cap&%al
e_pe.adit_res
cap_tal,
requirement,
for
L
e.g.
;'_hey
bozr_w
•_h_s.. appears _iz_ancing
fO= to
0,._the
their
be 15
_orkin_.7
the
case
corporations
in
_9@_
was
l_
when
per
cent
total mo_e
;
t'_'an,._heir
capital
expend-itures.
•6 ,:F.ac_orPr_uc_civity
•,we pr_a_etivity
have
attempted indJ.ca_ors
_o for
measure government
_r.!_ia!
_actor
ic0rporah,ions-
T_
.,+.-
,+Pore ,_ioPml
++97+
+,v_+_
Cor_+.+riimi;+,m__+
t+is_+l
_i_++"rant. _
P+9._fi, +
t,3
+3+-.+
+L_.
%+
4_._
+ 1 t_; "+++++._:
I++
+=!
1.,
_.+:.+"- "+:_
_+
_7
"
++i + +,._
7|6+,+
_,+.
7+_+
._.G
+++++
19_
S37P+++
_,3
++'+"+ +'_3+.
+.+
7+i
l_+
_.+
iI
++!_
.+m
++,m+_
,_,
+.+
:+.+!
-_..
++'++,+++
+:++_+J++++ t+-.+ _+
Fi_+_rei+++ t++++P
"
+
_
++._..-m
+ +++
"+.'++ {i+ pm_+m+;)
_+_.=+
3.+
"_
3;_
f_+it+l
7+BI
"
W,+
11_
%째 +
.._,+ +.... "+ m I+.+-'_,+
+,_.
t_E'+3
_.+
1+et3= P.
5+i
i_
It3.+
-. 40
T_e_.e. ,estimates What.
we
are
presented"
initially
•_st_tes
to
-
in
_I _
intended..to
existing
_
do
_stimates
I._ and
is. to
Table.
16.
compare
obta_nea
for
our
the
whole
_.i:'. /
eco_y
or
p_e_,o_s,
studies
same;.t__me
In the
lieu
factor
as
of
of
the
the
factor Table
1981
Z£ sh=,_en&s
2.6
Bowever,
LS%a_,li_h_nts
is
_overnment
d_e
Dar%.%_
i i _.h_t_,ent s
corpO_._i.on._._, suc,_ .,a one r_Lsky
_;e
i_dication privalte
"
are
how
•
"--
_
'
_
'
per
56.2
the
the,_e
the _r
th_.se Census
O_
Census that perhaps
c_. gov.e.rn_nt
first
of
t0
government admit
tO
pre_.ent
in
h_gh_r fi£tiea cen_
that is
give.
_or.po.ra_.ion•s Corapax'e
_TFP
Census
productivity
resultS,
(19a5. .,%.had
cent
on
are
o_
_ct_r
and
half
reeul_s
th._t
u_:_n.9 our
sectors
was
'
9
one
intensity
time,_
at
_overnment
.p_<,_uctlvity • • _ -
aZe
{"
of
_vez
These
g<_ver:_ment
_urisg it
l
Hoolev..
i _ •4
corp_ration_ honest,
"l_
coz'pcrations
_nly
"
present.in
+..'he ;_nufa_ur_.ng w_%s
produ_ztivity
yea- _ _c_,,._,;___. _ __'_n of
of
en_e._r_ses
!abor
we
t2_e
loOMed
Of
that
2._:!
While
based
ti_
_factor
ie
have
Establishments.
produch*v_%.y
,-_zp_.al
Tota_
not
._e then
•measure_,
sl£_h_ly
t%_e hig_
-e,._[_K>raL_ •-" • " -"ons -_ _ . astab
o_%ly
• corporah_.on_ _ * " to
plan,
Capital
is
However,
paper_
Cen.S.u= of
productivity
17 ),
ecO_a_y,
_)_oductivi_y.._o
present
eo=porationa,
o_
the
o_.iginal;
from• the
c'o_puted
EStab
on
frame
•data
_, see "
subsectors
..,,_aha on
some w_h public
:_imi.lar ze_ults _:xivate than 0
higher°
A
for
corpo_'.-a_ions in
goverP_ment
decade
later,
.SO .'the sh_ft
or
i
•- _
,.--_ _
.._--_.:_.u_.a:_._v._,_.:_-_.'-'_v_a_._,_:___'_"_a_l_,¢___-_-'I-_'
Table RATIO
OF
BVA
16
TO _)Oi2KIvALUE OF _OV_RNNENT BY SECTOR, 197,5 - 1984:
S E C T O R
1981
CORPORATIONB
%9_
I'383
r._
I.
IT. 111_ IV, V. v l. VT I, VI If.
1984
9
Ag_"i_.ult ure, _ Fishery m_n_:g
Fc,r_st ry.,
& Qua_ryi._g
Man,.ifac..-t ur iF,_ Con_.'_ _"_t.tct ion Electrici
_y
T,o,_._r:_a_ =on T_',_de A. B,,
F! havening H_tming
F 1NANCE "& HOU_ IN_
£_RAND ?t3TAL
3. 33
147.97
60.6_i
I16. _1
°J3.23
13,97
15,47
60. ,_,7
54.75
38.77
379, 32
_)0.51
38= 35
62= 71
53.73
5.5.4
4_ 30
4.. 73
.5. 98
8. 1,3
7.59
6. I_
$'23
_, 61
3.41
_' 77
14 8i _43o 70
134.11
_26,
22.
2.09
._;t
. t_.
199, _
1@5.25
148. B7
_7.4B
_3, ,$8
19, 9G
9.7-0
46, 21 • .84 40. l'e
i_, 09
J
-
43-
Table
17
FACTOR PRODUCTIV.TTYOF GOVE_M_T CORPO_AT_ONS_ ---A_O C_SUS E TABLXSm_T.S , 19aI __
GVA
(in million pesos) Government corporations Census estab lish_ents
Book
Value of Fixed Assets Government corporations Census estab lie}_ents
_,,6!._9_
(in
million
}_sos) _B6: _,2!_S09
Compensation (in million pesos) Gover;_ment corporati0ns Cens,as estab i i sl'_ments
_2 )7 ,
GVA
Assets
Ratio
(_overnmen -_.corporations Census establishments
(i) (2)
_ Compensation Katio ! Government :' .o.rporatiOns Census establishment_
GVA
.333 ,;863
,_: '9 .2
(_.)_ _I) x 1oo GVA
'"
(i) (, 2)
6;579 _:@D2
(_.)' (I) x i00
S7.8
Assets plus Compensation (Total 'factor productivity) Ratio ' Government corporations (1) Census est_b lis_aents
_3"_.7 _7_3
(_) - {!) x 100
a/ The data presented he,re excludes agriculture sector sÂąnce agriculture 198! Census of Establish_entso Source
_.,,
:
NCSO
21_,i
those per tainim_ i_ n,Ot included
_O Zba in;_he _'
J- 44
cordite
assets
must
have
had
ags-r._gate, ;". , .:,._ .
1960_:
private
But
reco_,:]ed
,at
the
partial
pe r WOgker
and
govez'nme,_:
196_
..-19"_0
imoa_?t
on
was; _sse_nt_al!y
_he
corp<;r0_.i,.%r_._!_ its.' i_0 ,:._:e.govezn_e!%Z
In
_eet.¢r
section,
•c_'r_.rations
two (I)
and ±neome
Table
19), COA
civi_, reglstered
of
COntZa_._"_
to
it
the
Gover_ent
profits
i-_".r-'Oilr_ :'';_
-a_sets,
rate
ra_e
aSz_=ultural/financing
o_ and
•
gov_rn_ent £_dicator_,
'
(ine% inco_.e
of
D efore
e_9_ (_._)ratio: (_ee
iTabte
re_u_r._ _D
18
0_ and
aSSets
of,
cer.por__i_ns
is[ 4_ 3 per, ceDt
on
is :
net
wor.hh
corpoza%icns social
fuz.
JG * "'_ " .p=o_:_tab%¢z_y
tc.,_letl _OX:th
tax
ra_-e oz" return
segative
•
total
government
scientific
esti._te
gross
i-n i984,
audited
t'ne_r
per.cent,
ratio
after,
we
financial
interests)
net,
(_n 'tb_
tha_
capit_i. _ ,
%hi s
n am_ly_
.-
,.ils_.i@po,;,r_ui._ s ..per'_o:._mancewith
aect:or,
of
TFP
productivity
l_er. w.c._.ke:cC._'.;._tl 9 tr3 ,_::_u%ion.e,.-fo_rhfl
USe
'
gove Zn/_nt-eo,'it_olled
;downward:
further
from
_.'_..t_h[_. g_rivate
i-_,t i_
to
significant
a par%£eu!_rly
p_od_tiOn
wh-_e%
private
•production
sabre : for
all
a
Look±ng
c_i_onS_
taXe!S
from
-
and
negati've
eng_q.ed banking
_t_l._n i_su_ance , ,,
on
in research_ activities
assets. _sted .. , ,
I.• 4
,
Those
all "_.:,
.the highest '
Table RATE
OF
RETURN
NE'[ WORTH
ON OF
18
'TOTF-a.' ASSETS
BOVERNMENT
f4ND RRTK
_ORPORATIO4_S,
OF :"IkTg_'i!'_" I/: 19_.
!
I
_r_
on
,i
As ts
Financial
i._
P_.q-.,lic _J,_i.._..i£_ie,,..,. _c.,_
...........
7
_,=B.I
•
{0. .)
_,, 3 'i
_-o_Y_:_,,_ _,ona I Trad in_ _duca_.ior_al, C',i.l%_i'_il,
& Civl za_ ion
71_'7 I, 5 S_)_:ial
Sc:ier_% i,fi{::4
Or'_ar,i-o _. %
_, ,'I
Soc i. aI Cul_a, ra!,
.(_ 2 :} ?. 5
I.@_ '_.6
Res_ar.ch
.(T.i)
._'7.7)
i/ Use_
SOURCII:=
3,, Z!,;_. 7
F..£!_o.
COA
¢.!asmifi_atii._.
'
:
Table
•i_a_EZ_F:, _u_
I_
_ "rcn'_ _
_
,,01_TOP 15 MAJOR N_-Fi_IRL
NET _RTH
Ra_e of Return _P_Pati_s
_S. NI_
Total
A_
_._ _z.2
,_:_E e,___ETU_ GGVE_E_
_r_ATIOWS,
Ra'_e of _umn _
WoP_h
4,,t_ ._i,,_
19_
- 47 -
rates
of
return
respective!
on, assets_
15,0_
I_o7
and
9.T,, PG,_ i , • i_t,,
•
y. !
Trading
exhibited
ithe highest
rate
of
ret_zn
_,on
i
equity
at,
following lowest
30.7
next rate
per
with
of
i cent
with
18!.I per
cent.
return!
on
the
equity
at
energy
See'%of
Bankin_
_d
,'_he
negata_e
g_
:
er
,cent
The
rate
non--financial in
i984.
r_t,urn
on
corpo_,_tiOns LWUA
_.,s_._,..s at "__" "_ lowest
of
pOste_{
4 ,6 per
at
ope_L_.tion s
assets was
the
cent., ' On
negaz•ive
I_
iikewi_e
of
all
below
five
higheet
rate
th@ •other
per
cent
riesulted
th
_maJor
(5'):_
!__t
oz iret_;rn!i on
hands
while in
15
PNR•,hadi,•_e '
SPZK[
negative
•and
' _IA
rates
of
,pe_.
c'ent
ze,.._..,.zn on ;._gsets.
regist_,_re<? followed
the
best
"_'Z PNOC
_erforma_,ce
'"'"" _,._ _.,hI_. 7 per
with
cent.
_.7_8
:NPC_,
PNR
_A,
i
N!A
and
HSDC
e,l] exhJ,b!ited :
" negat.ve
rates
of
r6t_,rn, ,,on
equity.
However should
be
_
used
performance caveats
the
raised
fin_.ncia,.!, ratios w±th
of in
'eome
c,aut ion
pub li_,',-enterpri Section
2.4._..
ses
presented: in
,abiove:
j _dg _nq
•because
of
tlhe the
- 48.-,.
Gover_ment. last
corporations
decadel
_n
'terms
contribution.
pL_Dli_
only
to
bo%h
remains,
_ector'
per
cent
nut,her
s
very
rapidly ' and:
,d_velopmen_ ...._.
-thi_
employment
enterp:i_e
!.0
cf
DeSpite
con_zibutiOn
had;. expanded
in • the
va_lue the,
.:.
smal..i..
added
sector
Sowever,
_,_h_e :.i.n_n_e_tm.e_t
_s the
•:!.8 .quite
""'_ ; "
of
financed..,
_he. over-all 1975
_....)_4 i_
corporations
deficit l_.rge.
alone
awa!labJ,a,
t_e
corpoEat_;ons
_n
per
c-'ent of
The
have
_ery
%_e
last
- .... ""
"
ec,j_.l t-"., 3, 9. per
deficit
years
s_etor
""
def..i.c.ir,of
five
these
a'_] l
go,_er;'J,_ent
ma_{ weill"exceea
_:' " " • , -gove_'nmen% ._e.flclts
hea_ily
on More
per.
of
of
C_NP).
finan_..l_l, gOVernment w_re
.financed
came
._rol_ _he Qf
m_.jor
.. ower-al.!
euppOrto
burden
i5
_b.li¢." enlt_rg._zse
a combined
sovernment, een_
the
_ive
(5).
GN.P.
"@o riddance r_l_e_
of
fz_m
govern_m_st
fo_._eis._ borro_.<ingls than _he
70.:/_::r cent:
_ef:h_-it
corporations external
national,
_ersporatlons
of
in
and
th_
while[
governsent.._ontrib_%.iQnS. corporatior_s
amount
national
{:_epz_senting
+..he las_.
borrowings
on.
have
_o__3
15 five
major.
203 __Ozl
(5.% y_a._2s
_h_,: _e_'u_ndez The..f&scal _ez: cent
of
GNP
in
1975
government
-
19B4
or
20
per
cent
more
than_
th_
,
deficit
:The
large
co=p_za•tions
size on
of
the
ti'_e
Da_•ional
de_%nd
of
_overnment
the
budget•,
gigJe_!•i'lithe
[
sl_9_i_sh
growth
in
tax
collections
in
the
_eri_,_ ,[
resulted
._n-
(i)
expenditure
reductlo
items
maintenance
and
national ar_
a
•like i
operating
government
the
n
in
the
those
Cer;.tra!
on
expense,
boz'row_.hgs, Benk,'
To
relative '
sharre
perso_%al
• etc,
the
e_tent
I
Of
'.
' ••_•
se!r_i_i_s _[.
and
b<,_th fro_
_ha,
',
_._)
the
ba_ki_#
_r_ys_em
tbat,
tlle
',Sai_J&Onai_
i
government se_tor
deficit• _nd
finance_:i sector
to
by
is
the
attributable
e_tent
money
'%bat
creation_
On
by
the
the
country
other'
of
.in th_
han•d_
the
the
na_io•nal
then
n_ay halve '_'_eena ¢au:_e
_xperi.enc_d
to
budget
the
the
governmez_
:ozl_m_ar.e ,. : ,,,',,
etabiliz_•ti0n
•.pr_b.!em, s
pe_'iod,
sizeable
:3e_?_and
_c>r •::'i_i_ i
borrowinss
by as
_ove.cnment
now
seen
and
balance-of.-pay-mentg
burden
of
d_and
on
resources/b
a _ajor
tlae
on
the
cause
,of the
in
foreigr_
exchange
the
pz._esent
d_fficulties
.publi,'; _n_erp=ise
both
as
4ay
on
fiscal:
the
_ector and
£i,ast a_:e_,::
b_get:
forgiven: , [ , ,
im_:_ses nat_onal
_is
a
deb£ _._av_
t Sow_r_t_nl
ud_i._ et.
Finally, sector
cor_,orat_Ons
has
the not
economy,
been
paper
suggests
that
the
an
efficient
user
of
To_al
facto_
_roductivity
p'.ibli_ _nterpris_! scarc.e'
o_!
resOur_es_
_
- 50-
corpo/a%_ons
is,only
enerpr$ s a,ss, etS per
45
in igs .
that
0,f, _ aon-government
=etu=n:on total
corporation
s- ,is low.
'les_, .th_n, five
(5)
[984.
To
relieve
the
_overnm@n-t
i_,pos_d
as
productivity
to_ raise
financial
by
the
burden
public,
and
,on
tha
national
,,,enterpr%_e, sector
promote
as
well
_e_,made ,the
eff%_£emcM-.
.reco_enda_ions
loll ow£ns
(!)
cen_
s±milarz'y
o=, government
cent"in
per
_%e, government
should
rationalize
th e: public
enterprise
>
Sector
by:
d_vesting
hol_ings.
The
identi
a_.i_tle=
and
sectors
privatization
of
enterprises
_or
the
the:
public
be
government enterprise measures
improvements,
of
men_
decision
r
making
eorporate appropriate
• cOwe_,eu_
D_,.
iWi_i
intea'eS%s
subject
will
such
control,
•
in
,,
_vernmemh
ensure
i.more
.. im_l_e
_tudy.
should efficient
{a)
prZci_g
(d) 'performance
under
reforms
systems,of
_he
__elected
,
the
(c)
"
will remain
tha_
a • ,and
'._?vern
of, .f=rther
should
existing
and
:,ithe,
.... that
measures,
internal
De
its
,S,,uidelines,,. mechanics
u_brellae
the
_f
of
porat!z,ons _
that
These
(b)
the
co
opera%ions.
control
the
goverDx_en_,t
should
ins%_ll
_,,
arrangemen_s_
4isposition
,of some
fixation
program,
_s_._tutionax
(_.)
itselfi
and
and
external inve_t-
e:al_ation,
-- 51,-
I
7,. _
_l. _i_
__I_
_x_., .__
-_ 53 -'
_
S_
_
Pla_a¢_
_wia_
i_.
C_t_.
Oil
_tal _s
- 55 ~
_.
_
_!
_
_io_
E_t_
l
?,,. _._!_
_._:
__
_r_r_.i_
, Di__
"- 56 -
t.S. _..:+_¢+;
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z+:m,_
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P.. _..-_
.'+_ +':+;: :5, ++
+L,_7+.,_,..+,,.+_+++,++_! '.++_+++. ,_..+,+,+._;+,_..
-++'_.+ ,
+:,_:,;::-
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_r.,_
; .... --+,'
'>._.:+.':_+_ _:+ .... '+"_:.'+ :,,+i:.+ +
+.
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:_" ,+_+ _7"_"..++_"_+-. _+ ..,,_.;+. +:'_+,+ +. _._,+:+++
...._.,,++P_,A++¢.+.:++_
+.+_. +
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ttm+,m++_+: _ :_m_+
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"Lw_tl _e __ilSties,_mi_istmWm
IP.. _"m
_tio_
17o.S-._.
_ _st,_ r_ital Coqmrsti_.
C,'.__
l_
&_,_ Gm"__,
••
2. _
t_m _i_m_i_ Ceelme_ttcm
5,
Phil,
P
& ,_-,,_._
_
_
1_a-_._
l,t_t _%
1_,
- 59 -
_, S-_IS
a_ZSe_lty _ _l_
Go p
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P
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Sett_s.uev,.
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¢d_
Co_
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â&#x20AC;˘_ _
_. s_
.[_al
[:i_
_ U_e_ils.
m_ral,n_ Fa,.Gh,_
_._-_.+
_,ee_,t_
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T_
- 6.1-
i_. _-_I_
_} O_l_
I_:_
-62 -
- 63-
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