The Philippine Star
• GOCC subsidies double to P53 B in 5 months
Subsidies extended to state corporations doubled to P52.99 billion in the first five months amid the government’s intensified health insurance and irrigation programs.
According to the latest cash operations report of the Bureau of the Treasury, subsidies to government-owned and controlled corporations jumped 104 percent to P52.99 billion as of end-May.
This despite the 6.47 percent decrease in the subsidies recorded for the month of May, alone. During the month, budgetary support to GOCCs declined to P3.83 billion from P4.1 billion last year.
The national government provides subsidies to state firms to cover their funds for programs and projects, as well as operational expenses.
To date, the Philippine Health Insurance Corp (PHIC) has so far received the largest subsidy amounting to P15.21 billion. This is in support of the state corporation’s thrust to increase its coverage for the benefit of indigent families.
It was followed by the National Irrigation Administration, which was given P13.58 billion in subsidies. The agency implements irrigation projects all over the country, and provides free irrigation to small-scale farmers.
Land Bank of the Philippines also received P12.33 billion in financial support during the period. The bank is currently beefing up its financial position in compliance with the Bangko Sentral ng Pilipinas’ capital adequacy ratio and the Basel III leverage ratio requirements.
The National Food Authority was also granted P1.8 billion, Subic Bay Metropolitan Authority (P1.51 billion), National Development Corp. (P1.5 billion), and the Power Sector Assets and Liabilities Management Corp. (P1.48 billion).
Also included in the list of GOCCs provided with subsidies during the period were the Philippine Coconut Authority (P794 million), National Electrification Administration (P694 million), Social Housing Finance Corp. (612 million), Philippine Children’s Medical Center (P447 million), Small Business Corp. (442 million), Philippine Heart Center (P376 million), Tourism Promotions Board (P375 million), National Power Corp. (P350 million), Philippine Rice Research Institute (P335 million), and the National Kidney and Transplant Institute (P245 million).
About 18 other state firms also received subsidies during the period, with each receiving amounts below P200 million.
Subsidies to GOCCs form part of the national government’s expenditures.
Last year, subsidies rose 27.04 percent to P131.09 billion. This is slightly below the programmed GOCC subsidies last year, which was 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 end-2017 level.