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Business

Government trims GOCC subsidies in May

Louise Maureen Simeon - The Philippine Star
Government trims GOCC subsidies in May
Data from the Bureau of the Treasury showed subsidies to government-owned and controlled corporations (GOCCs) in April went down by seven percent to P7.39 billion from P7.97 billion in the same period last year.
Bureau of the Treasury FB page

MANILA, Philippines — The government trimmed its budgetary support to state-run firms by almost 10 percent to P7.4 billion in May, with the bulk of the subsidies intended to support the agriculture sector.

Data from the Bureau of the Treasury showed subsidies to government-owned and controlled corporations (GOCCs) in April went down by seven percent to P7.39 billion from P7.97 billion in the same period last year.

During the month, budgetary support for major non-financial government corporations reached P5.54 billion, down by 15 percent.

On the other hand, subsidies for other government corporations picked up by 12 percent to P1.64 billion from P1.47 billion a year ago.

The government grants subsidies to GOCCs to cover their operational expenses that are not supported by their own revenues.

Last May, nearly 60 percent of the total subsidies went to the National Irrigation Administration (NIA) at P4.22 billion.

However, this represents a 33 percent decline from the P6.26 billion it received in the same period last year.

The National Food Authority secured the second highest subsidy at P849 million, while the National Housing Authority came in third with P363 million.

Other top subsidy recipients during the month also include the agriculture sector through the Philippine Fisheries Development Authority and Philippine Rice Research Institute, as well as the health sector via the Philippine Heart Center.

During the month, no subsidy was released to the Civil Aviation Authority of the Philippines, Philippine Crop Insurance Corp., Philippine Health Insurance Corp., Philippine Postal Corp., Power Sector Assets and Liabilities Management Corp. and SB Corp.

For the five-month period, subsidies went down by four percent to P37.65 billion from P39.36 billion a year ago.

Budgetary support for major non-financial government corporations reached P25.15 billion in the first five months, up by 10 percent, while subsidies for other government corporations slipped by 26 percent to P12.15 billion.

In May, the government reverted back to a budget deficit of P122.2 billion, albeit at a slower pace, after the increase in revenue collection outpaced the growth of state expenditures.

During the month, overall government expenditures moved by less than a percentage to P455.7 billion.

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