GOCC subsidies more than double to P45.29 billion

MANILA, Philippines — The national government extended P45.29 billion in subsidies to government-owned and -controlled corporations (GOCCs) in the first quarter of the year, according to the Bureau of the Treasury (BTr).

Latest data from the bureau showed this is more than twice higher than the P19.67 billion granted to state firms the same quarter last year.

For the month of March, alone, subsidies to GOCCs reached P35.24 billion, more than four times bigger than last year’s level of P8.41 billion.

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

In the first three months of the year, the largest budgetary support was given to Philippine Health Insurance Corp. The state corporation received P15.21 billion in total subsidies as support to its thrust to increase its coverage for the benefit of indigent families.

This was followed by the Landbank of the Philippines, which received P12.34 billion in total subsidies. Landbank is currently beefing up its financial position in compliance with the Bangko Sentral ng Pilipinas’ capital adequacy ratio and the Basel III leverage ratio requirements.

The National Irrigation Administration (NIA) was also given P8.34 billion in subsidies during the first three months of the year. The agency implements irrigation projects all over the country, and provides free irrigation to small scale farmers.

Meanwhile, the National Food Authority and the National Development Co. (NDC) received P1.8 billion and P1.5 billion in subsidies, respectively.

The Power Sector Assets and Liabilities Management Corp. also received P1.48 billion from the government, while the Subic Bay Metropolitan Authority was given P1.45 billion.

Other state firms who were granted support during the first three months of the year include the National Electrification Administration (P653 million), Social Housing Finance Corp. (P612 million), Small Business Corp. (P442 million), Philippine Heart Center (P232 million), National Power Corp. (P224 million), and Philippine Children’s Medical Center (P222 million), among others.