GOCC subsidies rise 27% to P131 B in 2017

The national government released P131.09 billion in subsidies last year to state corporations to support their respective programs and initiatives, the Bureau of the Treasury (BTr) said.

Based on latest data from the Treasury, budgetary support to government-owned and controlled corporations (GOCCs) in 2017 rose by 27.04 percent to P131.09 billion from P103.19 billion recorded in the previous year.

The amount was slightly below the programmed GOCC subsidies last year set at P135.51 billion, according to the Budget of Expenditures and Sources of Financing.

For December, alone, financial support to state corporations hit P31.23 billion, more than six times the P5.07 billion posted in the same month in 2016.

The national government provides subsidies to state firms to cover their funds for programs and projects, as well as operational expenses.

The Department of Budget and Management (DBM) earlier said subsidies to GOCCs mainly went to housing programs, irrigation projects and health insurance.

For 2017, the highest subsidy went to the Philippine Health Insurance Corp., which was granted P47.19 billion. This is 7.79 percent higher than the P43.78 billion it received the previous year.

The government is extending financial support to PhilHealth to help increase the fund’s coverage for the benefit of indigent families.

It was followed by the National Irrigation Administration (NIA), with P30.16 billion in total subsidies given as support for the implementation of irrigation projects all over the country, as well as its free irrigation program.

This is almost twice than the P16.91 billion it received in 2016. Meanwhile, subsidies received by the

National Housing Authority also jumped 62.43 percent to P19.56 billion as compared to the 2016 level of P12.04 billion. This amount was used for the completion of the agency’s housing programs.

As of end-December, the National Food Authority also received P5.11 billion in financial support for the agency’s Food Security Program. This program allows the NFA to buy palay from farmers at a good price, and sell the same to the public at a lower cost.

The Manila International Airport Authority (MIAA) was also granted P3.61 billion in 2016, while the Philippine Economic Zone Authority acquired P2.81 billion.

Other GOCCs that received subsidies last year include the Philippine Crop Insurance Corp. (P2.5 billion), Subic Bay Metropolitan Authority (P2.17 billion), National Electrification Administration (P2.05 billion), Philippine Coconut Authority (P1.43 billion), Bases Conversion and Development Authority (P1.35 billion), Sugar Regulatory Administration (P1.14 billion), among others.

Subsidies to GOCCs form part of the national government’s expenditures.

For this year, the national government is programmed to release P162.55 billion in subsidies to GOCCs, almost 24 percent higher than the end2017 level.

This will be driven mainly by the provision of budgetary support to gov- ernment financial institutions, namely the Development Bank of the Philippines and the Land Bank of the Philippines, to help them beef up their capital and financial capacity.