GOCCs subsidies reach P230 billion in 2020

MANILA, Philippines — Subsidies extended by the national government to state-owned corporations reached a new record high of P230.418 billion in 2020 as funding support for various pandemic-response programs were ramped up, data from the Bureau of the Treasury (BTr) showed.

The full-year 2020 total was   14 percent higher than the 2019 figure of P201.52 billion.

In 2020, controversy-ridden Philippine Health Insurance Corp. (PhilHealth) received the highest subsidy of P62.397 billion, almost half of the total P131.42 billion financial support for other government corporations.

The second largest recipient of subsidies last year was the Social Security System (SSS) which received total subsidies of P51 billion last year.

The state pension fund received budgetary support of P25.5 billion each in April and May last year to implement the Small Business Wage Subsidy Program through which the government provided cash aid to employees of small businesses that suffered from the pandemic.

Other large recipients of subsidies last year were the National Irrigation Administration, P33.68 billion; Land Bank of the Philippines, P23.20 billion; National Housing Authority, P18.14 billion; National Food Authority, P10.52 billion and National Electrification Administration, P6.28 billion.

From November up to December last year, Landbank received subsidies of P10 billion and P13.298 billion to support the implementation of the unconditional cash transfer program.

For December alone, subsidies extended by the national government reached P43.56 billion, almost double the P25.4 billion extended in the same month last year.

PhilHealth received the biggest support during the month with P23.82 billion followed by Landbank with P13.30 billion.

The national government extends subsidies to GOCCs to cover or extend funds for programs and projects, as well as operational expenses.