GOCC subsidies reach P62.5 biliion in June

MANILA, Philippines — Subsidies granted by the national government to government -owned and -controlled corporations (GOCCS) reached P62.5 billion in the first half of the year, according to the Bureau of the Treasury (BTr).

Latest data from the bureau showed this is 7.34 percent higher than the P58.22 billion recorded the same period last year.

However, for the month of June alone, subsidies dropped 69.92 percent, reaching only P9.72 billion from last year’s P32.31 billion.

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

As of end-June, the National Irrigation Administration (NIA) received the highest amount of subsidy among GOCCs amounting to P16.58 billion. This is, however, lower than the P20.09 billion it received a year ago.

NIA implements irrigation projects all over the country and provides free irrigation to small scale farmers.

This was followed by the Philippine Health Insurance Corp. which received P15.21 billion to date to increase its coverage for the benefit of indigent families.

The third largest subsidy during the period was granted to Land Bank of the Philippines, which received P12.33 billion. LandBank did not receive any budgetary support from the national government last year.

Currently, the bank is 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 Food Authority was also granted P7 billion in subsidies in the first six months of the year, as support for the agency’s Food Security Program.

Other GOCCs which received subsidies from the national government as of end-June include the Subic Bay Metropolitan Authority (P1.57 billion), National Development Co. (P1.5 billion), Power Sector Assets and Liabilities Management Corp. (P1.48 billion), Philippine Coconut Authority (P794 million), Small Business Corp. (P767 million), National Electrification Administration (P694 million), Social Housing Finance Corp. (P612 million), and Philippine Children’s Medical Center (P531 million), among others.   

Subsidies to GOCCs form part of the national government’s expenditures.

Last year, subsidies rose 27.04 percent to P131.09 billion from the P103.19 billion recorded the previous year. This is slightly below the programmed GOCC subsidies last year, which was set at P135.51 billion.

For this year, the national government is programmed to release P162.55 billion in subsidies to GOCCs, almost 24 percent higher than the end-2017 level.