Government subsidies to GOCCs down 25% in June

MANILA, Philippines - Subsidies extended to state-owned corporations fell 25 percent in June from a year ago, data from the Department of Finance showed.

The government released P34.947 billion in subsidies to government-owned and controlled corporations (GOCCs) in June, down 25 percent from P46.323 billion last year.

The Philippine Health Insurance Corp. (PhilHealth), tasked to provide universal health care to Filipinos, received majority of the funds during the month with P32.585 billion. 

The second biggest beneficiary, meanwhile, was the Trade department’s National Development Co. (NDC), which accounted for P1.589 billion.

Data from the DOF also showed the Local Water Utilities Administration (LWUA) collected P272 million in June, while the National Irrigation Administration (NIA) was given P142 million.

At the same time, the Philippine Children’s Medical Center (PCMC) received P87 million, while the Philippine Heart Center was funded P64 million during the period.

The June subsidies brought the first-half tally to P43.97 billion, which was 11 percent below the P49.54 billion in the same period in 2014.

The biggest recipient of subsidies in the first half was the PhilHealth with P32.594 billion, followed by National Food Authority with P4.25 billion.

The NDC got the third largest portion during the period at P1.589 billion, while the National Electrification Administration accounted for P731 million.

The government also spent P694 million for the PCMC during the six-month period and another P597 million for the NIA.

Other top recipients in the first semester were the Social Housing Finance Corp. (P513 million), LWUA (P423 million), the National Power Corp. (P411 million), the Philippine Postal Corp. (P301 million), and the National Home Mortgage Finance Corp. (P250 million).

Last year, subsidies to GOCCs climbed 21 percent to P80.44 billion from P66.329 billion in 2013. These subsidies made up only four percent of the government’s expenditures in 2014.