Subsidies to state firms up 12 percent to P137 billion in 9 months

MANILA, Philippines — The government increased its budgetary support to state-run firms by 12 percent to P137 billion in the nine months to September, with the bulk of the subsidies meant to support the health and agriculture sectors.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) in January to September went up to P137.13 billion from P122.25 billion in the same period last year.

During the period, subsidies for other government corporations rose by five percent to P78.26 billion from P74.33 billion a year ago. It cornered 57 percent of the aggregate.

On the other hand, budgetary support for major non-financial government corporations reached P58.38 billion, rising by 23 percent. It covered 42.6 percent of the entire subsidies.

The remaining 0.4 percent or P486 million went to government financial institutions particularly the National Home Mortgage Finance Corp.

The government grants subsidies to GOCCs as a way to cover operational expenses that are not supported by their own revenues.

As of the end of the third quarter, nearly 40 percent of the total subsidies went to the Philippine Health Insurance Corp. at P50.61 billion.

This is a 13 percent increase from the P44.92 billion it received in the same period last year.

The National Irrigation Administration secured the second highest subsidy at P31.81 billion. NIA registered an eight percent increase in subsidy from the P29.42 billion in the nine-month period in 2022.

The National Housing Authority came in third with P16.63 billion, almost doubling from the P8.94 billion it was granted last year.

Other top subsidy recipients during the month also include the agriculture sector through the National Food Authority, Philippine Crop Insurance Corp., Philippine Fisheries Development Authority and Philippine Rice Research Institute.

The health sector via the National Kidney and Transplant Institute, Philippine Children’s Medical Center and Philippine Heart Center also secured subsidies.