GOCC subsidies down 48.4% in January-May

MANILA, Philippines - Government subsidies to state-run companies continued to decline in the first five months of the year due to their improved capacity to generate income.

Data from the Department of Finance showed that the government extended a total of P3.22 billion in subsidies from January to May, down 48.4 percent-year-on year.

The biggest recipient of government financial assistance was the Philippine Deposit Insurance Corp. (PDIC) with P931 million or about a third of the total amount of subsidies given out during the period.

PDIC is a government-run deposit insurance fund established in June 1963. It guarantees deposits up to P500,000.

The second biggest beneficiary was the Philippine Postal Corp., cornering P667 million. PhilPost is responsible for providing postal services in the country.

Other top recipients of state subsidies were the Social Security System (P261 million), Social Housing Finance Corp. (P238 million), Philippine Rice Research Institute (P137 million) and the National Electrification Authority (P136 million).

The SSS earlier forged an agreement with the Department of Agriculture for the full subsidy of farmers’ monthly SSS contributions.  The move is part of the government’s continuing campaign to extend social protection to informal sector workers.

SHFC is the lead government agency that undertakes financing of social housing programs catering to the formal and informal sectors in the low-income bracket.

The Aquino administration wants the Philippines to be 100-percent rice self-sufficient. It targeted to reach this goal this year but moved it to 2015 after a deadly typhoon reduced rice harvests.

NEA, on the other hand, is tasked to provide electricity throughout the country.

Total subsidies for May reached P1.4 billion, 38.6 percent higher than the same month last year.