GOCC subsidies up in August

MANILA, Philippines — Subsidies granted to state-run corporations surged to P31.81 billion in August, bulk of which went to the Philippine Health Insurance Corp. (PhilHealth), according to the Bureau of the Treasury (BTr).

According to the latest cash operations report of the BTr, the total subsidies given to government-owned and -controlled corporations (GOCCs) in August were more than six times larger than the P5.04 billion recorded in the same month last year.

Despite the increase, the cumulative budgetary support to state firms from January to August amounted to P96.79 billion, about eight percent lower than the P105.25 billion in the same period a year ago.

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 25 state-run firms were given subsidies in August.

The bulk or more than 87 percent of the total aid sent to GOCCs was cornered by the PhilHealth, which received a total of P27.7 billion.

PhilHealth is in charge of administering the government’s health insurance program. Its thrust is to expand the health insurance coverage in the country, including indigent families.

Meanwhile, the Philippine Crop Insurance Corp. (PCIC) received P1.95 billion in subsidies last August. The PCIC is mandated to provide insurance protection to agricultural producers, particularly subsistence farmers, against losses arising from natural calamities, plant diseases and pest infestations.

The National Electrification Administration (NEA) was also given P571 million in budgetary support, while the National Irrigation Administration and the Development Academy of the Philippines received P456 million and P251 million, respectively.