Government releases P7.24 billion in GOCC subsidies

MANILA, Philippines — The national government granted P7.24 billion in subsidies to state-owned corporations in October, the bulk of which went to the National Food Authority (NFA) and Philippine Health Insurance Corp. (PhilHealth), according to the Bureau of the Treasury (BTr).

According to the latest data from the BTr, the amount of subsidies given to government-owned and -controlled corporations (GOCCs) in October was about 4.67 times higher than the P1.55 billion recorded in the same month last year.

Year-to-date, total government support to GOCCs amounted to P158.74 billion, which is also 25.6 percent higher than the P126.39 billion in the same period of 2018.

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

For October alone, a total of 28 state-run firms received assistance from the national government.

 The highest subsidy amounting to P2.77 billion was given to the NFA, which is mandated to maintain emergency rice buffer stocks and to purchase unhusked rice or palay from local farmers.

This was followed by the PhilHealth, which received P2.66 billion in financial support. The state-run corporation is in charge of administering the government’s health insurance program.

Meanwhile, the National Irrigation Administration was also given P483 million in subsidies, while the Local Water Utilities Administration and the National Power Corp. got P276 million and P253 million, respectively.

About P110 million in budgetary support was also granted to the Philippine Heart Center, and another P109 million was extended to the National Electrification Administration. 

Other GOCCs which secured subsidies during the month were the Bases Conversion and Development Authority (P92 million), Philippine Children’s Medical Center (P80 million), Philippine National Railways (P61 million), National Kidney and Transplant Institute (P59 million), Philippine Coconut Authority (P37 million), Philippine Rice Research Institute (P33 million), and Sugar Regulatory Administration (P30 million).