GOCC subsidies decline in Jan-Feb

MANILA, Philippines — State corporations received P9.13 billion in subsidies from the national government in February, 8.68 percent lower than the previous year’s P9.99 billion, according to the Bureau of the Treasury (BTr).

This brought the financial support to government-owned and -controlled corporations (GOCCs) to P10.05 billion from January to February, 10.75 percent lower than the P11.26 billion recorded in the same period in 2017.

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

For February alone, the National Irrigation Administration (NIA) received P4.47 billion in budgetary assistance, the highest amount extended by the government during the month.

The amount will be used for the implementation of the agency’s irrigation projects all over the country, as well as its free irrigation program.

Following NIA was the National Development Co. (NDC), which received P1.5 billion in subsidies last February. The NDC is the government’s investment arm, venturing into diverse industries and sectors.

The Power Sector Assets and Liabilities Management Corp. also received P1.48 billion from the government, while the Social Housing Finance Corp., Small Business Corp., and National Power Corp., were given P612 million, P442 million and P224 million, respectively.

Other state firms who were granted with financial support last February include the Philippine Heart Center (P88 million), Philippine Children’s Medical Center (P72 million), Philippine Rice Research Institute (P64 million), National Kidney and Transplant Institute (P49 million), Center for International Trade Expositions and Missions (P22 million), and Cultural Center of the Philippines (P21 million), among others.

Subsidies to GOCCs form part of the national government’s expenditures.

Last year, subsidies rose by 27.04 percent to P131.09 billion from the P103.19 billion recorded in the previous year. The amount was slightly below the programmed subsidies last year, which was set at P135.51 billion.

For this year, the national government is programmed to release P162.55 billion in subsidies to GOCCs, almost 24 percent higher than the end-2017 level.