MANILA, Philippines - Subsidies to government-run companies swelled by 56 percent last year, largely due to the infusion of additional funds for programs on electrification, housing and healthcare.
Data from the Department of Finance showed that the government extended a total of P66.33 billion in subsidies in 2013, significantly higher than the P42.64 billion spent the previous year.
The biggest recipient was the National Electrification Authority, which got P14.03 billion or more than a fifth of the total amount of subsidies granted last year.
In December alone, NEA also received the highest funding support, cornering P8.14 billion or almost a third of the entire P27.55 billion extended by the government during the period.
NEA is tasked to provide electricity throughout the country.
The second biggest beneficiary was the National Housing Authority, accounting for P13.34 billion of the total. The funds were used to relocate informal settlers living in disaster-prone areas, particularly near waterways in Metro Manila.
The third biggest recipient was the Philippine Health Insurance Corp. (PhilHealth) which received P12.65 billion. The amount was used to provide health care services to more than 10 million indigent families across the country pursuant to the amended National Health Insurance Act of 1995. This law is aimed at ensuring that all Filipinos, especially the neediest, will get health insurance coverage from PhilHealth.
Other state-owned firms that received more than P1 billion in subsidies were the Philippine Coconut Authority (P5.11 billion), National Irrigation Authority (P3.02 billion), National Food Authority (P2.32 billion), Philippine Deposit Insurance Corp. (P1.88 billion), National Transmission Corp. (P1.5 billion), Light Rail Transit Authority (P1.3 billion), and the National Kidney Transplant Institute (P1.28 billion).
The jump in spending for subsidies partly drove the increase in overall government expenditures in 2013.
Total public spending reached P1.88 trillion, up year on year by six percent as the government continued to prop up the economy to sustain the strong pace of growth.
The increase in state spending, however, was below the target set by the government, which was P1.98 trillion.