PhilHealth support boosts subsidies to GOCCs in May

MANILA, Philippines — Funding support for state-owned firms jumped by around 50 percent in May, as the government quadrupled its subsidies to the Philippine Health Insurance Corp. (PhilHealth) to P36.5 billion.

Based on data from the Bureau of the Treasury, the government increased the subsidies it extended to government-owned and controlled corporations (GOCCs) by roughly half to P44.68 billion in May, from P29.79 billion during the same month last year.

Broken down, major non-financial government corporations posted a more than 45 percent hike in subsidies to P5.34 billion, from P3.68 billion.

The government also jacked up its subsidies to other GOCCs by over half to P39.34 billion, from P26.11 billion. Bulk of the funding support, or about 82 percent, was directed to PhilHealth for the release of health premiums of senior citizens.

Subsidies disbursed to PhilHealth surged to P36.5 billion in May. It marked the highest funding support the agency obtained during the pandemic since the P26.17 billion it secured in June 2020.

The Treasury attributed the 29 percent spike in government spending in May to, among others, releases made to PhilHealth for insurance returns of senior citizens.

The government also injected subsidies to the Philippine Crop Insurance Corp. for the first time in six months, worth P1.75 billion.

Further, the National Irrigation Administration accounted for close to 62 percent or P3.31 billion of subsidies distributed to major non-financial government corporations, while the remaining 38 percent were booked by the National Housing Authority at P1.95 billion and the Light Rail Transit Authority at P85 million.

In spite of the May increase, subsidies granted by the government to GOCCs after five months slipped by nearly eight percent to P79.94 billion, from P86.65 billion during the same period last year. Other GOCCs bagged two-thirds of the amount at P52.83 billion, while major non-financial government corporations secured the remaining P27.1 billion.

Last year, subsidies disbursed to GOCCs ballooned by more than 14 percent to P230.41 billion, from P201.52 billion in 2019. It was the highest amount of funding support that the government extended since bookkeeping began in 1986.

Reflecting the demand for health assistance during the pandemic, PhilHealth accounted for over 27 percent or P62.39 billion of the subsidies released to GOCCs in 2020.

As much as GOCCs generate revenues to sustain their operations, they receive subsidies from the government for programs and projects that their own income can no longer cover.