GOCC subsidies reach P11.8 billion in November 2019

MANILA, Philippines —  Government-owned and -controlled corporations (GOCCs) received P11.82 billion in subsidies from the national government in November last year to support their operations and programs, according to the Bureau of the Treasury (BTr).

According to the latest data from the BTr, subsidies to state corporations jumped by 46.12 percent to P11.82 billion in November last year from P8.09 billion in the same month of the previous year.

From January to November 2019, total GOCC subsidies amounted to P170.55 billion, 26.8 percent higher than the P134.47 billion recorded in the same period of 2018.

The national government provides subsidies to state-owned firms to cover their funds for programs and projects, as well as operational expenses.

BTr data showed that a total of 32 state-run firms received assistance from the national government in November.

The largest budgetary support was given to the Philippine Health Insurance Corp. (PhilHealth), with subsidies amounting to P3.98 billion.  

The state firm is in charge of administering the government’s health insurance program, and its thrust is to expand the health insurance coverage in the country, including indigent families. 

This year, the agency will be in charge of implementing the government’s Universal Health Care Program.

PhilHealth was followed by the National Irrigation Administration (NIA) with P2.76 billion in subsidies. The agency implements irrigation projects all over the country and provides free irrigation to small scale farmers.

The National Housing Authority (NHA) was also granted P1.9 billion in support of its mandate to provide affordable housing to low-income families.

In addition, the Local Water Utilities Administration and the Philippine Crop Insurance Corp. received P909 million and P772 million in assistance, respectively.

The BTr said the Bases Conversion and Development Authority was also provided P408 billion in subsidies, while the Philippine Postal Corp. was given P271 million.

Other GOCCs which were granted subsidies include the Philippine Heart Center (P123 million), Philippine National Railways (P81 million), Philippine Children’s Medical Center (P76 million), Sugar Regulatory Administration (P74 million), National Kidney and Transplant Institute (P59 million), Cultural Center of the Philippines (P57 million), and Lung Center of the Philippines (P51 million), among others.

In 2018, government subsidies to GOCCs amounted to P136.652 billion, 4.24 percent up from the end-2017 level of P131.088 billion. 

This is projected to increase to P187.085 billion for full-year 2019, based on the Budget of Expenditures and Sources of Financing of the Department of Budget and Management.