GOCC subsidies decline P2.4 B in Sept

The national government granted P2.45 billion in budgetary support to state corporations in September, with the bulk going to agricultural agencies, data from the Bureau of the Treasury (BTr) showed.

According to the latest report of the BTr, subsidies to government-owned and -controlled corporations in September declined 21.32 percent to P2.45 billion from P3.12 billion the same month in 2016.

This brought total subsidies to P83.63 billion in the first nine months of the year, slightly lower from the P82.38 billion recorded the same period last year.

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

Based on Treasury data, National Irrigation Administration (NIA) received the largest subsidy in September, amounting to P643 million.

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

It was followed by the Sugar Regulatory Administration (SRA), which received P641 million in subsidies from the national government.

The SRA is tasked to promote the growth and development of the sugar industry through the development and implementation of policies, expansion of local and foreign markets, and strengthening coordination with the private sector.

The Philippine Crop Insurance Corp. an attached agency of the Department of Agriculture mandated to provide insurance protection to farmers against losses from national calamities, pest infestations and plant diseases — also acquired P350 million in budgetary support in September.

Meanwhile, the Philippine Heart Center, Phillippine Postal Corp., and National Kidney and Transplant Institute received P194 million, P134 million and P133 million in subsidies, respectively.

Other GOCCs which were granted subsidies include the National Power Corp. (P75 million), Bases Conversion and Development Authority (P57 million), Philippine Children’s Medical Center (P44 million), National Dairy Authority (P42 million), Philippine Rice Research Institute (P35 million), Center for International Trade Expositions and Missions (P25 million), and Lung Center of the Philippines (P22 million), among others.

Subsidies to GOCCs form part of the national government’s expenditures.

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 document of the DBM.

This is expected 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.