GOCC subsidies fall

Subsidies extended to government-owned and controlled corporations (GOCCs) fell 10 percent in the first five months of the year as fiscal authorities continued to keep a close watch on the financial assistance extended to state-run firms.

Data from the Bureau of Treasury showed that subsidies given to GOCCs reached P11.4 billion from January to May this year, about P1.3 billion lower than the P12.7 billion extended in the same period last year.

Major recipients of subsidies in the first five months of the year include cash-strapped National Food Authority ( NFA) with P4 billion, followed by Philippine Health Insurance Corp. (PHIC) with P2.1 billion, National Electrification Administration (NEA) with P1.56 billion, National Housing Authority ( NHA) with P1.2 billion, and Philippine Coconut Authority (PCA) with P656 million.

For the month of May alone, subsidies extended to GOCCs plunged 35.9 percent to P3.52 billion from P5.49 billion in the same month last year.

NFA led the list of recipients in May with P2 billion, followed by NEA with P1 billion, PCA with P180 million, NHA with P100 million, and Cultural Center of the Philippines with P49 million.

The government grants subsidies to NFA to allow the grains agency to fulfill its mandate of selling crop price at affordable rates even if these were bought at high prices.

Booked as expenses in the government’s financial statement, subsidies are extended to state agencies to support various projects, initiatives or other operational needs that require additional funding.

Financial assistance extended to state- run companies jumped 156 percent to P53.705 billion last year from P21.005 billion in 2010.