GOCC subsidies hit P134.5 B in Nov

MANILA, Philippines — The government extended P134.47 billion in subsidies to state corporations in the first 11 months of 2018, the bulk of which went to health insurance programs, according to the Bureau of the Treasury (BTr).

Latest data from the BTr showed that subsidies to GOCCs as of end-November 2018 rose by nearly 35 percent from the P99.86 billion recorded in the same period in 2017.

For November 2018 alone, subsidies reached P8.806 billion, 47.75 percent higher than the P5.96 billion posted in the same month in 2017.

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

According to the BTr, nearly 40 percent or P52.95 billion of the total national government subsidies as of end-November 2018 went to the Philippine Health Insurance Corp. (PhilHealth).

This is in support of PhilHealth’s thrust to expand its coverage for indigent families in the Philippines.

PhilHealth was followed by the National Irrigation Administration with P27.96 billion in total budgetary support. The agency is in charge of implementing irrigation projects all over the country, including providing free irrigation for small farmers.

A total of P25.136 billion in subsidies went to the LandBank of the Philipines as of end-November, in support of the bank’s efforts to boost its financial position in compliance with Bangko Sentral ng Pilipinas (BSP) regulations.

The National Food Authority received the fourth biggest subsidy amounting to P7 billion, followed by the Philippine Crop Insurance Corp. with P2.28 billion and the Philippine Economic Zone Authority with P2.024 billion.

Other GOCCs which were given subsidies during the 11-month period include the Subic Bay Metropolitan Authority with P1.57 billion, National Development Co. with P1.5 billion, Power Sector Assets and Liabilities Management Corp. with P1.48 billion, Philippine Coconut Authority with P1.38 billion, Small Business Corp. with P1.07 billion, Philippine Children’s Medical Center with P942 million, Philippine Heart Center with P816 million, National Kidney and Transplant Institute with P761 million, National Electrification Administration with P722 million, Social Housing Finance Corp. with P612 million, and Philippine Rice Research Institute with P572 million.

The national government also released subsidies to some 28 other state corporations from January to October 2018.

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.