Subsidies to GOCCs rise 4-fold

MANILA, Philippines – Government subsidies to state-owned corporations surged nearly four times in November last year to their highest level since July, latest data from the Bureau of the Treasury showed.

Subsidies amounted to P14.23 billion in November last year, up from P3.71 billion in the same period a year ago. The figure was also the highest since the P35.26 billion recorded in July last year.

Government-owned and controlled corporations (GOCCs) are assisted by the national government on their operations. Subsidies to them form part of the state’s total disbursements.

In return, GOCCs report a minimum of 50 percent of their income to national coffers that add up to revenues. For November, they remitted P33 million to the government.

Companies are required to report the bulk of their income to the government on or before May 15 each year, according to the Department of Finance.

From January to November, subsidies already reached P98.12 billion, up 32.05 percent from P74.31 billion in the same period a year ago.

For November, the Philippine Health Insurance Corp., the government’s health care provider, accounted for the bulk of credit assistance with P7.69 billion.

It was followed by the National Electrification Administration, in charge of energizing far-flung areas, with P2.14 billion, figures showed.

The National Irrigation Administration, which provides irrigation services to farmers, cornered P1.73 billion. Beginning this year, irrigation will now be free-of-charge under the 2017 budget.

Other recipients include the Light Rail Transit Authority with P937 million, Bases Conversion and Development Authority (P645 million), Philippine Crop Insurance Corp. (P384 million), Sugar Regulatory Administration (P246 million), Tourism Promotions Board (P125 million), People’s Television Network Inc. (P75 million), and Credit Information Corp. (P72 million).

Completing the list were Lung Center of the Philippines (P51 million), Philippine Children’s Medical Center (P50 million), think tank Philippine Institute for Development Studies (P18 million), Cultural Center of the Philippines (P12 million), Zamboanga City Special Economic Zone Authority (P8 million), Southern Philippines Development Authority (P4 million), Philippine Fisheries Development Authority (P4 million), Aurora Pacific Economic Zone and Freeport Authority (P3 million) and Philippine Heart Center (P2 million).