Gov’t subsidies to state-owned firms down to P6.63 B in July

MANILA, Philippines - Government subsidies to state-owned firms slightly declined in July to P6.63 billion, a big chunk of it was allocated for programs on food and electrification.

Documents from the Department of Finance showed that the biggest beneficiary for the period was the National Food Authority which received P4.25 billion or two-thirds of the total spending for subsidies.

Government aid has helped NFA avert bankrupty.  The agency, which is tasked to ensure ample suppy of affordable rice,  has been in the red since 2008, racking up a massive P160 billion debt.

Substantial subsidies were also granted to the National Electrification Authority which got P1.12 billion.

Other major recipients of state financial support were the Philippine Deposit Insurance Corp. (P465 million), Philippine Coconut Authority (P365 million), and the National Power Corp. (P304 million).

The July subsidy has brought total state subsidies to government-owned and controlled corporations (GOCCs) to P56.17 billion in the first seven months of the year, 75.5 percent higher than the P32 billion released in the same period last year.

For this year, the government is targeting to trim subsidies to GOCCs by 35 percent to P42.86 billion.

The higher spending for subsidies  came despite the government’s push for state-owned corporations to be self-supporting. 

Last year, total subsidies to government-run firms jumped 56 percent to P66.3 billion, exceeding the P42.79 billion ceiling set by the Aquino administration.