Gov’t subsidies to GOCCs hit P33.76B

MANILA, Philippines - The government extended P33.76 billion in subsidies to government-owned firms in the first eight months of the year, the bulk of which went to health care services.

Data from the Department of Finance showed that the amount is more than double the P15.37 billion given out by the government in the same period last year.

The top recipient of subsidies was the Philippine Health Insurance Corp. with P11.97 billion or more than one third of the total spending on subsidies.  The amount was used to provide health care services to more than 10 million indigent families across the country.

The four other big beneficiaries were the National Housing Authority (P8.25 billion), National Electrification Authority (P3.75 billion), NFA (P2 billion) and the National Irrigation Authority (P1.22 billion).

Total subsidies accounted for 2.7 percent of the government’s total expenditures during the eight-month period.

In August alone, subsidies to state-owned corporations amounted to P1.79 billion, up 30.9 percent from P1.37 billion.

President Aquino signed in June the amended National Health Insurance Act of 1995, aimed at ensuring that all Filipinos, especially the neediest, will get health insurance coverage from PhilHealth.

The Aquino administration remains steadfast in its thrust to provide refuge to informal settler families living in danger or high-risk areas.  It has directed the Interior and Local Government to spearhead their transfer to decent and safe housing sites.

The NHA is building 10 residential projects that will make available a total of 6,426 units to some 18,000 squatter families living in six priority waterways identified to be cleared this year.

Aside from this, the national government has been subsidizing rice imports through exemption from duties and taxes in order to keep prices affordable.