GOCC subsidies lowest in 13 months in Oct

MANILA, Philippines – Government subsidies tie government-owned and -controlled corporations decline to their lowest level in 13 months in October, latest data from the Bureau of the Treasury showed.

Government subsidies amounted to P1.51 billion in October down 76.64 percent from P6.49 billion in the same period last year.

The figure was also the lowest monthly amount given to GOCCs since September last year when P729 million was spent, figures showed.

Subsidies are granted to GOCCs to support their operations. In turn, state firms report at least 50 percent of their annual income as dividends. Dividend data for October was not immediately available.

The national government includes subsidies as part of its disbursements, while dividends form part of its income.

Despite the monthly decrease, year-to-date subsidies were still up 34.66 percent to P83.89 billion from January to October, data showed.

For October alone, the top recipient of subsidies was the National Irrigation Administration (NIA), which received P636 million.

President Duterte vowed to give free irrigation to farmers upon taking over and the Department of Agriculture, which oversees NIA, had taken steps toward that goal.

Following NIA was state investment promotion agency, Philippine Economic Zone Authority (PEZA), with P313 million; Sugar Regulatory Administration, P183 million; Tourism Promotions Board, P125 million; Philippine Health Insurance Corp., P101 million; and Bases Conversion and Development Authority, P46 million.

Lower subsidies contributed to a narrower budget deficit of P2.35 billion in October from last year’s P27.02 billion.

From January to October however, deficit – which indicates the government spent more than earned– widened more than four times to P216.05 billion, Treasury data showed.

The cap for the year was pegged at P388.9 billion.