GOCC subsidies double to P3.07 B in 2 months

MANILA, Philippines - The government extended P3.07 billion in subsidies to state-owned and controlled corporations in the first two months of the year, data from the Bureau of Treasury (BTr) showed.

The amount is double the P1.53 billion shelled out in the same period in 2012.

Of the P3.07 billion, P1.61 billion went to major non-financial government corporations while the balance of P1.46 billion was channeled to other government agencies.

The BTr did not give a breakdown of the amount and which agencies benefited from it.

In February alone, the government released P2.82 billion in subsidies, nearly three times the P1.09 billion extended in the same month a year ago.

However, in January, the government granted only P247 million in subsidies, 44 percent lower than the P441 million given out a year earlier.

In 2012, subsidies to state firms amounted to P42.15 billion, down 21.5 percent from P53.7 billion the previous year.  The decline was due to ramped up spending by the government to further fuel the economy.

The top five recipients of subsidies in 2012 were the Philippine Health Insurance Corp. (P14.07 billion), National Food Authority (P7.66 billion), National Electrification Administration (P4.95 billion), National Irrigation Administration (P2.81 billion)  and National Housing Authority (P2.4 billion).

Other agencies that received big subsidies were Manila Waterworks Sewerage System (P1.83 billion), Government Service Insurance System (P1.5 billion) and Philippine Coconut Authority (P1.18 billion).  

Last week, the BTr reported that state spending in the two months to February climbed 14 percent to P124.1 billion, outpacing the growth in revenues, which rose only two percent to P250.72 billion.