NG subsidies to GOCCS soar to ₧44.7B in May

THE national government gave P44.69 billion in subsidies to state-run firms in May this year, with Philippine Health Insurance Corporation (Philhealth) cornering the bulk of the amount.

Subsidies extended to government-owned and -controlled corporations (GOCCS) surged by nearly 50 percent compared to only P29.8 billion in the same month a year ago, data from the Bureau of the Treasury showed.

Other government corporations, including Philhealth, received the biggest share of subsidies at P39.34 billion in May, while the remaining P5.35 billion went to major nonfinancial government corporations. Government financial institutions have yet to receive any amount since the start of the year.

Out of P44.69 billion in subsidies in May, Philhealth received P36.5 billion.

Trailing Philhealth in the list of GOCCS with the biggest subsidies during the month are National Irrigation Administration or NIA (P3.3 billion), National Housing Authority or NHA (P1.95 billion), Philippine Crop Insurance Corp. or PCIC (P1.75 billion) and National Dairy Authority (P205 million).

5-month total down 7.75%

MEANWHILE, the government gave a total of P79.94 billion in subsidies to GOCCS from January to May this year, down by 7.75 percent from last year’s P86.66 billion.

During the five-month period, most of the subsidies were given to other government corporations at P52.83 billion while P27.1 billion went to major nonfinancial government corporations.

Even for the January-to-may period, Philhealth still took the lion’s share of subsidies at P45.46 billion. It was followed by NIA (P14.2 billion), National Food Authority (P7 billion), NHA (P5.18 billion) and PCIC (P1.75 billion).

The national government provides subsidies to state-run firms to fund operations not covered by the corporate revenues or to finance specific programs or projects.

Last year, the national government spent a total of P230.42 billion in subsidies to GOCCS, the highest since 1986 when the government started collecting data. Philhealth cornered the biggest allocation, receiving P62.4 billion or 27 percent of the total subsidies released during the period.