GOCC subsidies reach P38 B in July

MANILA, Philippines — The national government provided P38.29 billion in subsidies to state-run firms last July, the bulk of which went to the Land Bank of the Philippines, according to the Bureau of the Treasury.

According to the latest cash operations report of the BTr, subsidies to government -owned and -controlled corporations (GOCCs) in July rose by nearly 18 percent to P38.29 billion from P32.47 billion in the same month last year.

This brought the national government’s total budgetary support to GOCCs to P64.99 billion in the first seven months, 35.15 percent lower than the P100.21 billion recorded in the same period in 2018.

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

Based on BTr data, a total of 26 state-run firms were granted subsidies last July.

Leading them was Land Bank of the Philippines, which received P18.49 billion in financial support during the period.

National Treasurer Rosalia de Leon said the amount was intended for the distribution of fuel subsidy to operators of public utility jeepneys under the Pantawid Pasada Program of the government.

Landbank was followed by the National Housing Authority with subsidies amounting to P8.28 billion, and the National Irrigation Administration with P7.57 billion in assistance.

The National Electrification Administration also secured P1.1 billion in budgetary support from the national government, while the National Power Corp. and the Sugar Regulatory Administration received P810 million and P739 million, respectively.

Meanwhile, some P263 million in subsidies was granted to the National Kidney and Transplant Institute (P263 million), and another P215 million was given to the Philippine Rice Research Institute.

Other GOCCs who were given subsidies during the month were the Philippine Heart Center (P179 million), Philippine Children’s Medical Center (P149 million), National Dairy Authority (P137 million), Philippine Coconut Authority (P68 million), Light Rail Transit Authority (P46 million), Lung Center of the Philippines (P35 million), and the National Food Authority (P31 million).

At least 11 other state corporations were also given subsidies amounting to less than P30 million each during the period.