GOCC subsidies down 25% in Jan

MANILA, Philippines - Subsidies granted to government-owned and -operated corporations (GOCC) declined by a quarter in the first month of 2017 as it reached P1.266 billion, with the bulk going to irrigation services, data from the Bureau of Treasury (BTr) showed.

Based on the latest Treasury data, the January subsidies issued to state-owned and -operated firms was 25 percent lower than the amount released in the same month last year at P1.697 billion.

Subsidies cover state corporations’ funds for programs and projects, as well as operational expenses.

Data from the BTr showed that the bulk of government support to GOCCs in January went to the National Irrigation Administration (NIA).

During the period, the NIA received P745 million in subsidies from the national government, almost three times the P253 million granted in January 2016.

To recall, the Duterte administration allotted over P2 billion in subsidies for the agency in its bid to provide free irrigation services to farmers and enhance their productivity. This is on top of the P36.4 billion approved budget for NIA under the General Appropriations Act.

The second highest subsidy during the month of January was given to the Social Security System (SSS) at P194 million.

Last February, President Rodrigo Duterte gave the go-signal for the implementation of the additional P1,000 pension to qualified SSS retirees, survivors and permanently disabled pensioners retroactively effective on January 2017.

The SSS earlier said it allotted P6.9 billion for the release of the additional P1,000 monthly pension in the first quarter of 2017.

The Philippine Children’s Medical Center received the third largest subsidy at P62 million, followed by the Philippine National Railways with P43 million, Center for International Trade Expositions and Missions with P35 million and the Philippine Heart Center with P31 million.

Other state firms who also acquired government assistance in January include the Philippine Coconut Authority (P24 million), National Kidney and Transplant Institute (P21 million), Lung Center of the Philippines (P21 million), Cultural Center of the Philippines (P19 million), Philippine Institute for Development Studies (P14 million), People’s Television Network Inc. (P13 million), Philippine Rice Research Institute (P12 million) and the Development Academy of the Philippines (P12 million).