GOCC subsidies breach P200 billion

MANILA, Philippines — Subsidies to state-run firms breached the P200-billion mark from January to October as the government extended increased support for its operations and COVID-19 response efforts, according to the Bureau of the Treasury (BTr).

Based on the latest report from the BTr, P205.92 billion in subsidies were released to 41 government-owned and controlled corporations (GOCCs) from January to October, 25 percent higher than P164.31 billion in the same period last year.

This has also surpassed the full-year 2019 tally of P201.52 billion.

The 10-month figure remained higher year-on-year even as GOCC support last October declined by nearly 13 percent to P6.311 billion from P7.24 billion a year ago.

During the month in review, the National Irrigation Administration received the bulk of the subsidies with P4.27 billion.

It was followed by the National Electrification Administration with P885 million and the National Housing Authority (NHA) with P252 million.

Philippine Postal Corp. and the Philippine Heart Center also belonged to the top recipients in October, as they secured P125 million and P118 million in subsidies, respectively.

On a year-to-date basis, the Social Security System was still the highest receiver of subsidies this year, with a total of P51 billion.

This amount was used for the implementation of the Small Business Wage Subsidy Program, which provided cash aids to employees of small businesses affected by the coronavirus pandemic.

Second was the National Food Authority,  which has so far received P37.65 billion in assistance this year.

Controversy-ridden Philippine Health Insurance Corp. also cornered P30.45 billion of the total subsidies released.

NIA has secured P29.24 billion in total cash support, followed by the NHA with P17.99 billion, NEA with P12.3 billion and Light Rail Transit Authority with P11.15 billion.

Government-run corporations receive subsidies from the national government to cover the fund requirements for their programs and projects, as well as operational expenses. Subsidies to GOCCs form part of the government’s expenditures.

In October, disbursements dropped by almost seven percent to P289.6 billion as compared to P310.8 billion in October last year.

Still, total expenditures in the first 10 months   grew by nearly 13  percent to P3.31 trillion from P2.94 trillion, propelled by the government’s COVID-19 emergency response and assistance programs.

This accounted for 76.4 percent of the P4.335 trillion revised full-year expenditure program for 2020.

Earlier, the Department of Budget and Management said spending for the remainder of the year is expected to be driven by expenditures for health and social projects, especially with the passage of the Bayanihan to Recover as One Act.