Government allots P4.4 billion subsidies in January

MANILA, Philippines — The government ramped up its budgetary support to state-run firms to P4.4 billion in January, with the bulk of the subsidies meant to fund the agriculture sector.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) reached P4.39 billion in January.

In the same period last year, no subsidy was released to any agency.

During the month, the bulk of the budgetary support went to major non-financial government corporations totaling P3.42 billion.

Some P899 million was earmarked for other government corporations, while the remaining P63 million went to government financial institutions, notably SB Corp.

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

For January, nearly 80 percent of the total subsidies went to the National Food Authority at P2.25 billion.

The National Irrigation Administration secured the second-highest subsidy at P1.09 billion, while the Philippine Heart Center came in third with P184 million.

Other top subsidy recipients during the month include the health sector through the National Kidney and Transplant Institute and the Philippine Children’s Medical Center.

The agriculture industry also secured subsidies via the Philippine Coconut Authority and the Philippine Rubber Research Institute.

In January, the administration returned to a surplus, but the budget excess was lower, at P68 billion, as state spending growth outpaced revenue expansion.

During the month, government expenditures jumped by 20 percent to P398.8 billion, while revenues rose slowly from 11 percent to P467.1 billion.