GOCC subsidies hit P229 billion from January to November 2020

MANILA, Philippines — Subsidies received by state-run corporations rose to P228.7 billion in the first 11 months of 2020, boosted by the government’s funding support for various coronavirus pandemic response programs, according to the Bureau of the Treasury (BTr).

The January to November 2020 figure was 29.85 percent higher than the P176.12 billion recorded in the same 11-month period in 2019. This has, likewise, exceeded the full-year 2019 tally of P201.52 billion.

For November, alone, budgetary support to government-owned and -controlled corporations (GOCCs) surged by more than 92 percent to P22.78 billion from P11.82 billion in the same month last year.

During the month, Land Bank of the Philippines received the highest subsidy amounting to P10 billion. The BTr, in an earlier statement, said the release was made to support the implementation of the government’s Unconditional Cash Transfer Program.

It was followed by the controversy-ridden Philippine Health Insurance Corp. (PhilHealth), which cornered P8.13 billion in financial support.

Other top recipients of subsidies in November were the National Irrigation Administration (NIA) with P2.48 billion and the Philippine Crop Insurance Corp. (PCIC) with P1.49 billion.

Year-to-date, the Social Security System (SSS) retained its place as the GOCC with the highest amount of subsidies received so far this year.

The pension fund acquired P51 billion in budgetary support which was used for the implementation of the Small Business Wage Subsidy Program. Through this program, the government provided cash aids to employees of small businesses affected by the coronavirus pandemic.

Following SSS was PhilHealth, which has accumulated P38.57 billion in total subsidies this year.

Agricultural agencies, namely the National Food Authority and the NIA, were given P37.65 billion and P31.72 billion, respectively.

Also topping the list were the National Housing Authority with P18.08 billion, National Electrification Administration with P12.31 billion, Light Rail Transit Authority with P11.15 billion, Landbank with P10 billion, PCIC with P3.16 billion, and National Power Corp. with P1.69 billion.

Thirty-three other state-owned firms have also been given subsidies during the 11-month period.

Government-run corporations receive subsidies from the national government to help cover the fund requirements for their programs and projects, as well as operational expenses. Subsidies to GOCCs form part of the government’s expenditures.

According to the BTr, the increase in subsidy releases in November last year helped government disbursements recover after two consecutive months of contraction.

Expenditures in November grew by 2.3 percent to P374.1 billion from P365.6 billion in 2019. This brought disbursements to P3.69 trillion in the first 11 months of 2020, 11.59 percent up from P3.3 trillion in the same period in 2019.

On the other hand, the Department of Finance (DOF) said earlier GOCCs remitted P160.62 billion to the National Treasury as of Dec. 15, 2020 to augment the state’s war chest against the COVID-19 pandemic.