Subsidies to gov’t firms up 46%
Subsidies granted by the national government to state-owned companies jumped by more than 46 percent in the first 11 months of the year, a big part of which went to healthcare, housing and electrification.
Data from the Department of Finance showed that the government extended a total of P39.07 billion from January to November in subsidies to state-owned firms compared with only P26.67 billion a year ago.
The biggest beneficiary for the period was the Philippine Health Insurance Corp. (Philhealth), which received P11.975 billion or third of the total for the substantial subsidies granted to Philhealth were used to provide health care services to more than 10 million indigent families across the country.
The second biggest recipient was the National Housing Authority which received P8.25 billion. Additional funding support was given to NHA for the relocation of informal settlers living in disasterprone areas, particularly near waterways in Metro Manila.
The third top recipient was the National Electrification Administration, which is tasked to provide electricity throughout the country. It received P5.88 billion during the 11-month period.
The two other state-owned firms that made up the top five beneficiaries of subsidies were the National Food Authority (P2 billion) and Philippine Deposit Insurance Corp. (P1.88 billion).
Other state-owned firms that received more than P1 billion in subsidies were the National Irrigation Administration (P1.51 billion), National Kidney and Transplant Institute (P1.29 billion), and Philippine Coconut Authority (P1.1 billion).
In November alone, subsidies to government-run corporations reached P3.17 billion, down 48.8 percent year on year.
The increase in subsidies partly contributed to the hike in the government’s aggregate expenditures during the period.
The Finance department reported last week that government expenditures amounted to P1.68 trillion or an increase of nine percent from the 2012 level. The hike was largely driven by higher spending on infrastructure as part of the Aquino Administration’s efforts to further pump prime the economy to sustain inclusive and sustainable growth.