A total of P12.7 billion in subsidies were extended to government-owned and controlled corporations (GOCCs) in February, 35 percent higher compared with P9.4 billion in the same month last year.
Based on the Bureau of the Treasury report, more than half of state subsidy disbursements were allocated to National Irrigation Administration, amounting to P7 billion.
Other GOCCs and organizations, including the National Food Administration and various medical and development institutions, also received government subsidies.
Government beefs up state subsidies in February
Apr 7, 2024 06:48 AM
At a glance
The amount of subsidy the Marcos administration extended to government-owned and controlled corporations (GOCCs) was raised to 35 percent in February, as the bulk of it went to the National Irrigation Administration (NIA).
Based on the Bureau of the Treasury data, financial support extended to state-owned companies increased to P12.7 billion in February this year from P9.4 billion in the same month in 2023.
The GOCC that received a huge portion of the subsidy was NIA, getting P7 billion, or more than half of the total during the month as part of the efforts to mitigate the dry spell due to El Niño phenomenon.
Of the P5.768-trillion national budget this year, the government had set aside P41.3 billion for NIA to fund irrigation projects.
Other major recipient of subsidy was the National Food Administration with P2.25 billion.
Moreover, the Social Housing Finance Corporation received P667 million subsidy along with the Philippine Heart Center with P303 million, Sugar Regulatory Administration with P284 million, and Small Business Corporation with P250 million.
In addition, Philippine Children's Medical Center, National Kidney and Transplant Institute, and National Privacy Commission all received P228 million, P207 million and P181 million financial support from the national government.
The February subsidies were also the year-to-date figure as no national government assistance were provided for GOCCs in the month of January.
The higher subsidy to GOCCs in February comes as the Marcos administration’s budget shortfall dropped.
The national government incurred a P164.7-billion fiscal gap in August, up 55 percent from P106.4 billion last year.
One factor that increased the government’s budget deficit was the faster public spending during the month as government expenditures rose by 22 percent to P318.2 billion.
Last year, subsidies extended to GOCCs cost the national government some P165.53 billion. This amount declined from the previous year’s P200.41 billion.
The GOCCs that received substantial portions of the subsidy were Philippine Health Insurance Corp. and NIA, getting P50.7 billion and P40.7 billion, respectively.
For this year, the national government has allotted P222.5 billion to GOCC subsidies.