MANILA, Philippines — Subsidies granted by the national government to state firms surged almost eight-fold last September given the higher support given to health insurance and irrigation programs, according to the Bureau of the Treasury.
According to the latest cash operations report of the BTr, subsidies to government-owned and -controlled corporations (GOCCs) in September jumped almost 700 times to P19.58 billion from the P2.45 billion recorded in the same month last year.
This brought the total subsidies to P124.83 billion in the first nine months, 49.26 percent up from P83.63 billion posted in the same period in 2017.
The national government provides subsidies to state firms to support the requirements for their programs, projects, as well as operational expenses.
Based on Treasury data, the Philippine Health Insurance Corp. (PhilHealth) received the largest subsidy last September amounting to almost P5.3 billion to support the state firm’s thrust to increase its health insurance coverage for the benefit of indigent families in the country.
PhilHealth was followed by the Land Bank of the Philippines, which received P4.95 billion in budgetary support from the national government. Currently, the bank is beefing up its financial position in compliance with the Bangko Sentral ng Pilipinas’ capital adequacy ratio and Basel III leverage ratio requirements.
The National Irrigation Administration (NIA) and the Philippine Crop Insurance Corp. (PCIC) also received subsidies amounting to P4.83 billion and P2.28 billion, respectively.
NIA is in charge of implementing irrigation projects all over the country, as well as providing free irrigation to small farmers, while the PCIC provides insurance protection to farmers against losses arising from natural calamities, plant diseases and plant infestations.
Other GOCCs which were given subsidies are the National Dairy Authority (P382 million), Small Business Corp. (P300 million), National Kidney and Transplant Institute (P271 million), Light Rail Transit Authority (P265 million), Social Security Service (P185 million), Philippine Rice Research Institute (P182 million), and Sugar Regulatory Administration (P113 million), among others.
Subsidies to GOCCs form part of the national government’s expenditures.
Last year, subsidies rose by 27 percent to P131.09 billion from the P103.19 billion recorded in the previous year. This is slightly below the programmed GOCC subsidies last year, which was set at P135.51 billion.
For this year, the national government is programmed to release P162.55 billion in subsidies to GOCCs, almost 24 percent higher than the end-2017 level.