GOCC subsidies surge in 8 months

MANILA, Philippines — Subsidies granted to state-run corporations almost doubled in the first eight months as the government increased its support to institutions with COVID-19 response programs, according to the Bureau of the Treasury (BTr).

Based on the latest data from the BTr, subsidies to government-owned and controlled corporations (GOCC) from January to August surged by 99 percent to P192.45 billion from the P96.79 billion in the same period last year.

This is despite the 84.32 percent decline in GOCC support in August, reaching only P4.99 billion compared to P31.81 billion a year ago.

Government-run corporations receive subsidies from the national government to cover their funds for programs and projects, as well as operational expenses.

Treasury data showed that a total of 36 state-owned firms were given subsidies in the first eight months.

Pension fund Social Security System (SSS) cornered the highest amount of budgetary support during the period amounting to P51 billion, which was used for the Small Business Wage Subsidy Program.

The program provided cash aids to employees of small businesses affected by the coronavirus pandemic.

It was followed by the National Food Authority, which received  P37.65 billion to support its mandate to maintain emergency rice buffer stocks.

The controversy-ridden Philippine Health Insurance Corp. (PhilHealth) was also granted P30.30 billion in total subsidies during the period.

About P22.35 billion in subsidies also went to the National Irrigation Administration, P17.74 billion to the National Housing Authority, P11.51 billion to the Light Rail Transit Authority, and P11.06 billion to the National Electrification Administration.

Other GOCCs which were given budgetary support include the Small Business Corp. or SBC (P1.5 billion), Philippine Crop Insurance Corp. or PCIC (P1.32 billion), Philippine Heart Center (P952 million), National Power Corp. (P936 million), Philippine Coconut Authority (P820 million), Philippine Children’s Medical Center (P681 million), National Kidney and Transplant Institute (P608 million), International Center for Settlement of Investment Disputes (P576 million), and Philippine Rice Research Institute (P518 million), among others.

For August alone, the highest subsidy amounting to P2.61 billion was given to the NIA, followed by the PCIC and the SBC with P1.32 billion and P500 million, respectively.

Subsidies to GOCCs form part of the government’s expenditures. In the first eight months, government disbursements grew by 20.79 percent to P2.67 trillion from P2.21 trillion in the same period last year.