GOCC subsidies reach P10.49 billion in February

MANILA, Philippines — The national government extended P10.49 billion in subsidies to state-owned corporations in February to provide funding support to their programs and projects, according to the Bureau of the Treasury (BTr).

Latest data from the BTr showed that total subsidies given to government-owned and -controlled corporations (GOCCs)  in February was more than 3.75 times larger than the P2.77 billion recorded in the same month last year.

A total of 23 GOCCs received budgetary support from the national government, which they can use to fund programs and projects and to cover their operational expenses.

The National Irrigation Administration (NIA) received the biggest subsidy of  P5.89 billion, accounting for more than half of the financial assistance to GOCCs.

It was followed by the National Food Authority (NFA), which was given P2.98 billion in financial support.

About P355 million in subsidies was also extended to the Small Business Corp., while the Philippine Heart Center and the Light Rail Transit Authority received P236 million and P170 million, respectively.

Other GOCCs  which received subsidies include the Philippine Children’s Medical Center (P156 million), National Kidney and Transplant Institute (P150 million), Philippine Rice Research Institute (P108 million), Philippine Institute for Development Studies (P81 million), Lung Center of the Philippines (P54 million), Philippine Coconut Authority (P52 million), Center for International Trade Expositions and Missions (P52 million), and Cultural Center of the Philippines (P51 million), among others.

Subsidies extended by the national government to state-owned corporations reached a record-high of P201.52 billion last year, up by 47.5 percent to from P136.85 billion in 2018.

Upon the enactment of Republic Act 11469 or the Bayanihan to Heal as One Act last March 24, unused GOCC funds and investments, including unutilized or unreleased subsidies, were reallocated to help address the coronavirus disease 2019 or COVID-19 outbreak.

State corporations were also ordered to reassess their operations for the year, and determine programs, activities and projects that may be discontinued to generate savings that can be used for COVID-19 response.

According to data from the Department of Finance (DOF), GOCCs have remitted P129.45 billion in dividends to the BTr from January to April 29.

About P91.62 billion of the amount was remitted after the effectivity of RA 11469. Before the law was passed, GOCCs were able to remit P37.83 billion.