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Reform boost GSIS position as top GOCC
Manila Bulletin
The Government Service Insurance System (GSIS) remains the most profitable government-owned and -controlled corporation (GOCC) in the country, statistics from the Department of Finance (DoF) showed. More below.
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The DoF data on the consolidated public sector deficit (CPSD) said the GSIS surplus for the first half of the current year significantly offset the negative cash position not only of other GOCCs, but also of the national government.
The January to June 2005 CPSD showed that P23.566 billion in surpluses were chipped in by the GSIS, the Social Security System, and PhilHealth. The GSIS contributed P13.74 billion or about 58 percent of the three GOCCs' combined surpluses.
The GSIS' P13.74-billion surplus for the first semester has exceeded by P5.1 billion the P8.607-billion projected cash flow surplus of the state pension fund for the period.
The emergence of GSIS as the best for performing GOCC is largely due to the reforms initiated by GSIS President and General Manger Winston Garcia to plug loopholes that were previously draining the funds of government employees.
These reforms include prudent spending and the implementation of programs such as the Premium-Based Policy and the Claims and Loans Interdependency Policy (CLIP).
The Premium-Based Policy, in a nutshell, entails the granting of benefits and privileges to member based on the actual and correct premiums the GSIS received from its members. The CLIP, on the other hand, cross defaults the members' outstanding dues.
The GSIS and the other GOCCs strong fiscal position complemented the improve cash position of the national government, which according to the CPSD data manage to reduced by almost 60 percent its budget deficit.
The government registered a deficit of P94.299 billion in the first six months of 2004. But due, among others, to its cost-saving measures, the country's budget deficit now stands at only P41.619 billion.
October 23, 2005.
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