GOCC subsidies reach P32.47 B in July

The national government extended P32.47 billion in subsidies to government-owned and -controlled corporations (GOCCs) last July to support their operations, according to the Bureau of the Treasury (BTr).

The figure is almost twice larger than the P16.89 billion in total financial support received by state firms in the same month last year, according to the Treasury.

Year-to-date, subsidies released as of end-July reached P100.21 billion, 33.46 percent higher compared to last year’s level of P75.09 billion.

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

Last July, the bulk or P27.69 billion of the total subsidies went to the Philippine Health Insurance Corp. (PhilHealth). The amount will be used to support PhilHealth’s thrust to increase its coverage for the benefit of indigent families.

This was followed by the Land Bank of the Philippines, which received P2 billion in budgetary support from the national government.

Currently, the bank is beefing up its financial position in compliance with the Bangko Sentral ng Pilipinas’ capital adequacy ratio and Basel III leverage ratio requirements.

The government also granted almost P2 billion in subsidies to the National Irrigation Administration (NIA). The agency implements irrigation projects all over the country, and provides irrigation to small-scale farmers.

The Philippine Coconut Authority also received P275 million in subsidies, while the Philippine Children’s Medical Center and Philippine Heart Center got P109 million and P72 million, respectively.