GOCC sub­si­dies plunge in Au­gust as wage sub­sidy ta­pers off

Business World - - The Economy -

THE Na­tional Gov­ern­ment’s bud­getary sup­port to state-run firms de­clined sharply in Au­gust af­ter a pause in ex­tra­or­di­nary mea­sures to sup­port em­ploy­ment, which peaked dur­ing the hard lock­down, but the eight-month to­tal was still nearly twice the year-ear­lier level, the Bureau of the Trea­sury (BTr) re­ported.

The BTr said the gov­ern­ment re­leased P4.988 bil­lion worth of sub­si­dies to gov­ern­ment-owned and -con­trolled cor­po­ra­tions (GOCCs) in Au­gust, down 84.3% from a year ear­lier. The to­tal was also 72% lower com­pared with the P17.9 bil­lion re­leased in July.

The Na­tional Ir­ri­ga­tion Ad­min­is­tra­tion (NIA) re­ceived P2.606 bil­lion, or 52% of the to­tal. This was fol­lowed by the Philip­pine Crop In­sur­ance Corp. which got P1.32 bil­lion.

Small Business Corp. re­ceived P500 mil­lion, Philip­pine Heart Cen­ter P126 mil­lion, the Philip­pine Chil­dren’s Med­i­cal Cen­ter P95 mil­lion and the Na­tional Ir­ri­ga­tion Ad­min­is­tra­tion (NIA) P83 mil­lion. Oth­ers re­ceived less than P50 mil­lion while 15 GOCCs re­ceived no bud­getary sup­port from the gov­ern­ment that month.

Sub­si­dies reached P192.453 bil­lion in the first eight months of the year, up 98.83% from a year ear­lier, af­ter the So­cial Se­cu­rity Sys­tem (SSS) ad­min­is­tered a wage sub­sidy pro­gram to en­cour­age em­ploy­ers to main­tain head­count.

The SSS re­ceived P51 bil­lion over the eight months, while the Na­tional Food Au­thor­ity re­ceived P37.65 bil­lion and the Philip­pine Health In­sur­ance Corp. P30.3 bil­lion.

The gov­ern­ment’s bud­get for GOCC sub­si­dies this year was trimmed by P5.1 bil­lion to P191 bil­lion af­ter state funds were di­verted to sup­port the pan­demic con­tain­ment ef­fort.

The gov­ern­ment sub­si­dizes GOCCs to cover op­er­a­tional ex­penses not sup­ported by their rev­enue. — Beatrice M. Laforga

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