GOCC subsidies surge to P36.15 B in 1st quarter
Subsidies extended by the government to state-run corporations almost quadrupled in the first quarter due mainly to increased support to the National Electrification Administration (NEA) and Light Rail Transit Authority (LRTA).
According to the latest report from the Bureau of the Treasury (BTr), budgetary support to governmentowned and -controlled corporations (GOCCs) amounted to P36.15 billion from January to March, a dramatic increase of 289 percent from the P9.3 billion recorded in the same period last year.
For March alone, subsidies jumped by almost 4.5 times to P25.67 billion compared to last year’s P5.74 billion.
The government provides subsidies to state-owned firms to cover their funds for programs and projects as well as operational expenses.
Data from the BTr showed that a total of 26 GOCCs received financial support in the first quarter.
Topping the list was the NEA, which received P11.02 billion in subsidies in March. The state firm is mandated to pursue the country’s rural electrification program.
It was followed by the LRTA with P10.59 billion in total subsidies in the first quarter.
The National Irrigation Administration (NIA) also received P8.84 billion in budgetary support during the period, while the National Food Authority (NFA) received P2.98 billion.
The BTr said the Small Business Corp. also received P500 million in subsidies, followed by the Philippine Heart Center with P354 million and Philippine Fisheries Development Authority with P342 million.
Other GOCCs in the list include the National Housing Authority, with P288 million in subsidies; Philippine
Children’s Medical Center, with P234 million; National Kidney and Transplant Institute, with P225 million; and Philippine Rice Research Institute, with P162 million, among others.
In 2019, subsidies extended by the national government to state-owned corporations reached a record-high of P201.52 billion, up by 47.5 percent from P136.85 billion in 2018.
Upon the enactment of Republic Act 11469 or the Bayanihan to Heal as One Act last March 24, unused GOCC funds and investments, including unutilized or unreleased subsidies, were reallocated to help address the coronavirus disease 2019 or COVID-19 crisis.
State corporations were also ordered to reassess their operations for the year and determine programs, activities and projects that may be discontinued to generate savings that can be used for COVID-19 response.
According to data from the Department of Finance (DOF), GOCCs have remitted P129.45 billion in dividends to the BTr from January to April 29.
About P91.62 billion of the amount was remitted after the effectivity of RA 11469. Before the law was passed, GOCCs were able to remit P37.83 billion.