Stratospheric paychecks belie fiscal prudence

With the country’s fiscal deficit widening, newly released data from the Commission on Audit (CoA) has renewed public scrutiny over how government resources are allocated — particularly at the highest levels of the bureaucracy.

According to CoA’s 2024 Report on Salaries and Allowances (RoSA), the top government bankers were the biggest wage earners among public officials.

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona received P47.97 million in gross compensation last year, making him the highest paid government official.

He was followed by Deputy Governors Chuchi Fonacier (P30.39 million) and Francisco Dakila Jr. (P28.82 million).

Of the 20 highest paid government officials, 15 were from the BSP, a constitutionally independent and fiscally autonomous institution.

While their salaries are not drawn from the national budget, the scale of compensation stands in stark contrast to efforts by revenue agencies to tighten tax collections and justify increased public spending.

The data was released just days after the Bureau of the Treasury reported a P411.5-billion budget deficit in the first four months of the year — nearly 79 percent higher than the same period last year.

From January to April, government spending rose 13.57 percent year-on-year to P1.9317 trillion, outpacing revenue growth of just 3.35 percent. Much of the deficit has been attributed to economic recovery programs and the frontloading of public disbursements.

Public perception

The CoA report has since raised fresh questions about consistency and public perception.

While the Department of Budget and Management (DBM) maintains that the fiscal program is on track — stating that the current deficit accounts for only 26.7 percent of the full-year cap of P1.537 trillion — the contrast between the ballooning national debt and the high compensation packages for top officials has not gone unnoticed.

DBM Undersecretary Godess Libiran said the government’s spending strategy is intentional and aligned with long-term development goals.

“It has been the policy of the government to ensure the timely, if not early, implementation of programs, activities, and projects to ensure that the corresponding benefits redound to the targeted beneficiaries and to the economy in general,” she said.

Still, the newly disclosed salary figures complicate the conversation on fiscal prudence — especially as ordinary taxpayers and small businesses face stricter tax enforcement.

April’s tax revenue grew by 7.84 percent, led by the Bureau of Internal Revenue’s P420.5-billion collection, largely from income and value-added taxes.

In contrast, non-tax revenues in April fell by 68.08 percent year-on-year to P24.1 billion, due to delayed remittances from government-owned and controlled corporations (GOCCs), many of which also appear on CoA’s high-salary list.

The Marcos administration has reiterated its confidence in its economic team, retaining Finance Secretary Ralph Recto and Budget Secretary Amenah Pangandaman despite increasing fiscal and political pressure.

Highest paid Cabinet members

Meanwhile, Science and Technology Secretary Renato Solidum Jr. emerged as the highest paid Cabinet member in 2024, based on the CoA report.

According to the report published this week, Solidum earned a total P6.38 million in salary, allowances, and other benefits last year.

Solidum overtook Justice Secretary Jesus Crispin Remulla, who topped the 2023 rankings.

Remulla dropped to third place with P5.28 million, while Commission on Higher Education (CHEd) chairman Prospero de Vera III climbed to second with P5.37 million.

De Vera was replaced on Thursday by CHEd Commissioner Shirley Castañeda Agrupis after President Marcos Jr. accepted his courtesy resignation.

Rounding out the top five were Social Welfare Secretary Rex Gatchalian with P5.19 million and Labor Secretary Bienvenido Laguesma at P5.19 million.

The rest of the top 10 highest paid Cabinet members in 2024 were Health Secretary Teodoro Herbosa, P5.11 million; ICT Secretary Ivan Uy, P5.03 million; Agrarian Reform Secretary Conrado Estrella III, P4.99 million; Agriculture Secretary Francisco Tiu Laurel, P4.96 million; and Public Works Secretary Manuel Bonoan, P4.95 million.

The CoA explained that those who earned less, like Education Secretary Juan Edgardo Angara and Communications Secretary Cheloy Garafil, did so because they were mid-year appointees or transfers.

The 2024 RoSA spanned over 1,400 pages and provided a detailed breakdown of the compensation of government officials, reinforcing transparency in public service.