GOCC subsidies triple to P8.8 B in August

MANILA, Philippines - Money given to state agencies nearly tripled in August from a year ago, driven mainly by subsidies to two government-owned and -controlled corporations (GOCCs), latest data from the Bureau of Treasury showed.

Total subsidies amounted to P8.802 billion in August, up nearly three-fold from P3.075 billion last year. Eleven GOCCs and government financial institutions (GFIs) benefited from government grants that month.

Cornering half of total subsidies, the National Housing Authority (NHA) topped the list with P4.414 billion. The Power Sector Assets and Liabilities Management Corp. (PSALM) followed with P3.789 billion.

The NHA is the primary housing agency of the government, while PSALM handles the state’s debts in the energy sector as well as the privatization of existing state power assets to generate new source of funding.

Subsidies are given by the government to GOCCs and GFIs to cover for their financing needs.

In turn, GOCCs and GFIs annually remit part of their operating proceeds to the national coffers. Subsidies form part of government expenditures, while GOCC remittances are considered state revenues.

In August, the other agencies that received subsidies and the amount they were each granted were the Cultural Center of the Philippines (P73 million), the Center for International Trade Expositions and Missions (P52 million), Lung Center of the Philippines (P70 million), National Dairy Authority (P72 million), National Irrigation Administration (P99 million) and the National Power Corp. (P97 million).

Rounding up the list were the Philippine Children’s Medical Center (P43 million), Philippine Heart Center (P32 million), Philippine National Railways (P14 million), People’s Television Network Inc. (P17 million), Southern Philippines Development Authority (P4 million) and the Zamboanga City Special Economic Zone Authority (P22 million).

From January to August, aggregate subsidies totaled P55.09 billion, still down by seven percent from last year’s 59.243 billion.

Subsidies form part of the government’s total expenditures, which amounted to P161.6 billion in August, up 15 percent amid the Aquino administration’s effort to accelerate spending after a dismal first half.

For the first eight months, disbursements reached P1.444 trillion, up 11 percent year-on-year.