GOCC subsidies down in July

State corporations received P16.87 billion in subsidies from the national government in July, down 52.16 percent from the P35.26 billion recorded in the same month in 2016, latest data from the Bureau of the Treasury (BTr) showed.

This brought subsidies to government-owned and -controlled corporations (GOCC) to P75.09 billion in the first seven months of the year, 4.5 percent higher than P71.86 billion last year.

The national government provides subsidies to state firms to cover their funds for programs and projects, as well as operational expenses.

According to the Department of Budget and Management, the decrease in subsidies released to GOCCs in July was mainly due to the early and staggered payments to the Philippine Health Insurance Corp.

The PhilHealth acquired the largest budgetary support in July, amounting to P15.11 billion.

“In July 2016, P33.8 billion was released to the PhilHealth for the health insurance premiums. For this year, however, some P9.3 billion was already released in June, while the remaining requirements are expected to be released in the succeeding months once validation of beneficiaries against the updated National Household Targeting System (NHTS) list has been completed,” the DBM said.

The government is intensifying its financial support to the PhilHealth to help increase the fund’s coverage for the benefit of indigent families.

Meanwhile, P978 million in subsidies was also extended to the National Irrigation Administration (NIA), the second highest level during the period.

The government grants financial support to NIA for the implementation of irrigation projects all over the country, as well as its free irrigation program.

The Philippine Rice Research Institute also received P337 million in budgetary support from the government in July, followed by the People’s Television Network Inc. with P105 million, the National Electrification Administration with P100 million, and the Subic Bay Metropolitan Authority with P70 million.

Other GOCCs which were granted subsidies during the period include the Center for International Trade Expositions and Missions (P69 million), Philippine Heart Center (P38 million), Lung Center of the Philippines (P22 million), Philippine National Railways (P13 million), Zamboanga City Special Economic Zone Authority (P13 million), Philippine Fisheries Development Authority (P5 million), and the Southern Philippines Development Authority (P3 million).

In 2016, subsidies issued to GOCCs went up by 32.28 percent to P103.19 billion, the highest amount on record since 1995.

For this year, the national government is programmed to release P135.51 billion in total subsidies to GOCCs, according to the Budget of Expenditures and Sources of Financing (BESF) document of the DBM.

This is programmed to increase next year by almost 20 percent to P162.55 billion, due mainly to the provision of budgetary support to government financial institutions, namely, the Development Bank of the Philippines and the Land Bank of the Philippines, to help them beef up their capital and financial capacity.