Subsidies to GOCCs reach P2.15 B in April

MANILA, Philippines -  The national government granted P2.15 billion in subsidies to state corporations in April,  down 55 percent from the P4.83 billion released the same month last year, the Bureau of the Treasury (BTr) reported.

However, from January to April, total subsidies jumped 67 percent to P21.82 billion from the P13.07 billion posted the same period in 2016.

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

The largest subsidy in April at P669 million went to the Bases Conversion and Development Authority (BCDA).

BCDA is a state corporation focused on developing former military assets into new centers for growth. It is engaging in public infrastructure projects, including tollways, airports, seaports and major real estate developments.

It is currently involved in the development of the Clark Green City, which is envisioned to be the first sustainable smart city in the Philippines.

It was followed by the Small Business Corp. and Social Housing Finance Corp. with P338 million and P317 million in subsidies, respectively.

The National Irrigation Administration, meanwhile, received P268 million in subsidies in April, followed by the Development Academy of the Philippines with P222 million and the Philippine Economic Zone Authority with P158 million.

Other recipients of government assistance in April were the Subic Bay Metropolitan Authority (P62 million), Philippine Heart Center (P38 million), Philippine Fisheries Development Authority (P35 million), Philippine National Railway (P23 million), Cultural Center of the Philippines (P8 million), National Electrification Administration (P7 million), Southern Philippine Development Authority (P3 million) and Philippine Health Insurance Corp. (P2 million).

Subsidies to GOCCs contributed to the P183.1 billion in expenditures recorded in April, which also fell four percent from P191.6 billion the same month last year.

In 2016, subsidies issued to GOCCs went up by 32.28 percent to P103.19 billion, the highest amount on record since 1995.

For this year, the national government is programmed to release P128.87 billion in total subsidies to GOCCs, according to the Budget of Expenditures and Sources of Financing (BESF) document of the Department of Budget and Management.