GOCC subsidies more than double to P19.7 B in Q1

MANILA, Philippines -  Subsidies granted to government-owned and -controlled corporations (GOCCs) more than doubled in the first three months of the year, with the bulk going to the National Irrigation Administration (NIA) and the National Food Authority (NFA).

According to the latest data from the Bureau of the Treasury, assistance to state firms soared 138 percent to P19.67 billion from the P8.24 billion in the same period in 2016.

Government subsidies for the month of March, alone, amounted to P8.41 billion, more than twice the P3.89 billion posted in the same month last year.   

The national government provides subsidies to state firms to cover their funds for programs and projects, as well as operational expenses.

During the first quarter, the bulk of government subsidies went to two agricultural GOCCs – NIA  and NFA.

The NIA received P11.08 billion in subsidies in the first quarter, more than five-fold the P2.06 billion acquired by the agency in the same quarter in 2016.

NIA spokesperson Pilipina Bermudez said subsidies granted to NIA during the period were used to implement irrigation projects all over the country, as well as its free irrigation program.

To recall, the government has allotted over P2 billion in subsidies to NIA for the provision of free irrigation to farmers this year.

“That is already included (in the first quarter figures) that’s why we don’t collect current ISF (irrigation service fee) since January. What we collect are back accounts for 2016 and previous years,” Bermudez told The STAR in a text message.

The NFA, for its part, obtained P5.1 billion in subsidies as of end-March for its Food Security Program.

Marietta Ablaza, NFA spokesperson, said the agency regularly receives subsidies, which allows it to buy palay from farmers at a good price, and sell the same to the public for a lower cost.

“This is to serve our mandate of price and supply stabilization, as well as food security,” Ablaza told The STAR in a phone interview.

Other agencies which received subsidies from the government include Subic Bay Metropolitan Authority with P1.113 billion; National Power Corp., P425 million; Philippine National Railways, P370 million; and National Home Mortgage Finance Corp., P333 billion, among others.

Higher subsidies to GOCCs contributed to the increased national government expenditure of P615.40 billion in the first quarter.

In 2016, subsidies issued to GOCCs went up 32.28 percent to P103.19 billion, the highest amount on record since 1995.