GOCC subsidies up 12% to P94 B in Jan-Oct

MANILA, Philippines — Government subsidies to government-owned and -controlled corporations ballooned to P10.28 billion in October, a nine-fold increase from the  P1.154 billion recorded a year ago, according to data from the Bureau of the Treasury.

For the first 10 months, subsidies to GOCCs amounted to P93.9 billion, up 12 percent from P83.53 billion in the same period last year.

The national government provides subsidies to state firms to  fund their programs and projects as well as operational expenses.

Based on Treasury data, the Philippine Health Insurance Corp. (PHIC) received the largest subsidy in October with P6.76 billion.

The government is intensifying its financial support to the PhilHealth to raise the fund’s coverage of more indigent Filipinos.

Based on an earlier statement of the Department of Budget and Management (DBM), the P6.76 billion given to PHIC is part of the unreleased premium subsidies for the beneficiaries of the National Health Insurance program that was supposed to be given in the third quarter of the year.

The DBM said the delay was due to the adoption of a new targeting system to determine the beneficiaries of the program.

Meanwhile, the National Irrigation Administration received P2.04 billion in budgetary support from the government for the implementation of irrigation projects all over the country.

The Light Rail Transit Authority was also given P711 million in financial support, while the Social Security System (SSS) received P274 million.

GOCCs which received subsidies in October are the Philippine Postal Corp. (P134 million), Subic Bay Metropolitan Authority (P111 million), Sugar Regulatory Administration (P78 million), Cultural Center of the Philippines (74 million), Philippine National Railway (P39 million), National Dairy Authority (P29 million), National Power Corp. (P20 million) and the National Food Authority (P5 million).

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

For this year, the national government is programmed to release P135.51 billion in total subsidies to GOCCs, according to the Budget of Expenditures and Sources of Financing (BESF) document of the DBM.

The amount is expected to increase next year by almost 20 percent to P162.55 billion due mainly to 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.