GOCC subsidies reach P922 M in January

The national government extended P922 million in subsidies to state corporations in January to support their operations and programs, the Bureau of the Treasury (BTr) reported.

Subsidies extended to government-owned and -controlled corporations in January was 27.17 percent lower than the P1.266 billion recorded the same month last year.

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

The National Irrigation Administration (NIA) received the largest budgetary support amounting to P426 million to be used for the implementation the agency’s of irrigation projects all over the country, as well as its free irrigation program.

This was followed by the Philippine Health Insurance Corp., with P119 million as support to the PhilHealth’s thrust to increase its coverage for the benefit of indigent families.

The Philippine Children’s Medical Center also acquired P78 million in subsidies, while the Philippine Heart Center and the Philippine Rice Research Institute were given P72 million and P60 million, respectively.

Other agencies that also received budgetary support in the first month of 2018 include the National Kidney and Transplant Institute (P49 million), Center for International Trade Expositions and Missions (P32 million), Cultural Center of the Philippines (P21 million), Lung Center of the Philippines (P20 million), and the Philippine Institute for Development Studies (11 million).

Receiving less than P10 million in subsidies were the Light Rail Transit Authority, People’s Television Network Inc., Philippine Institute for Traditional and Alternative Health Care, Philippine Coconut Authority, Aurora Pacific Economic Zone and Freeport, Southern Philippines Development Authority, and the Zamboanga City Special Economic Zone Authority.

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

Last year, subsidies rose 27.04 percent to P131.09 billion from P103.19 billion recorded the previous year. This is slightly below the programmed GOCC subsidies last year, set at P135.51 billion.

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 government 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.