Gov’t subsidies to GOCCs drop 16% in 1H

State subsidies to government owned and controlled corporations (GOCCs) dropped by double digits in the first semester of the year, the Bureau of the Treasury said.

Based on its cash operations report, the treasury reported that government subsidies to state-owned companies declined by 16 percent to R36.6 billion in January to June this year from R43.97 billion in the same period last year.

At end June, 2016, about 29 percent of government’s total subsidies or R10.63 billion went to National Housing Authority (NHA), an agency mandated to provide decent, adequate, and affordable housing to low-income families.

Aside from the housing agency, the government likewise spent R8.12 billion for the National Irrigation Administration (NIA) and another R4.25 billion in subsidy to cash-strapped National Food Authority (NFA).

Other beneficiaries of government funds were the Social Housing Finance Corp. with 1.67 billion, Subic Bay Metropolitan Authority with R1.61 billion, the Philippine Economic Zone Authority with R1.48 billion and Philippine Health Insurance Corp. with R1.47 billion.

The Philippine Coconut Authority and National Electrification Administration also received subsidies from the national government in the first semester of the year amounting to R1.25 billion and P1.01 billion, respectively.

Other recipients of subsidies were the Philippine Children’s Medical Center (R753 million), National Home Mortgage Finance Corp. (R750 million), the Philippine National Railways (R692 million), and the National Power Corp. (R536 million).

The Bases Conversion Development Authority also received R401 million, along with Philippine Postal Corp. (R301 million), National Kidney and Transplant Institute (R193 million), Philippine Heart Center (R181 million) and People’s Television Network Inc. (R175 million).

Another recipients were Development Academy of the Philippines (R143 million), Philippine Rice Research Institute (R129 million), Center for International Trade Expositions and Missions (R113 million), and Light Rail Transit Authority (R106 million).

In June alone, government subsidies to state-owned corporations amounted to R16.05 billion, lower by 54 percent compared with R34.95 billion in the same month last year.

Last year, the total subsidies to government companies declined three percent to R78.01 billion.

Of the total, the Philippine Health Insurance Corp. (Philhealth) received the biggest subsidy amounting to R34.87 billion, followed by NIA (R11.68 billion), NHA (R11.21 billion), NFA (R4.25 billion) and NEA (R4.18 billion).