GOCC subsidies down in Q1

MANILA, Philippines - Subsidies to government-owned and -controlled corporations continued to see a downward trend in the first quarter as some public firms have become less dependent on state support.

Data from the Department of Finance showed that the subsidies amounted to P1.23 billion from January to March, down by 77 percent from P5.36 billion given out in the same period last year.

The top recipient of subsidies, in terms of cumulative receipt, was the Philippine Postal Corp. with P667 million.

The Government Service Insurance System (GSIS) recently restored the full benefits of nearly 7,000 Philpost employees in the National Capital Region following the reconcilation of their service records.

Under the agreement, Philpost will pay about P110 million representing unpaid premiums from June 24, 1997 to Nov. 30, 2012.

Others major recipients were the Tourism Promotions Board (TPB), P125 million; National Electrification Administration (NEA), P100 million); Philippine Children’s Medical Center (PCMC), P65 million, and the Center for International Trade Expositions and Missions (CITEM), P61 million.

The TPB (also known as Philippine Convention and Visitors Corp.) is part of the Governance Commission’s (GCG) regular sector-wide evaluation of GOCCs based on financial viability and relevance to current national development plans.

The Department of Budget and Management recently released P3.93 billion to NEA to help 33 electric cooperatives in 19 provinces hit hard by typhoon Yolanda.

The subsidy was intended to fast-track the rehabilitation and restoration of power lines in the affected areas.