Subsidies to gov’t firms surge

MANILA, Philippines - Subsidies to government-owned firms surged 75 percent in the first 10 months of the year from the same period last year, data from the Department of Finance showed.

During the 10-month period, the government extended P35.907 billion in subsidies to government-owned firms, the bulk of which went to health care services.

The latest figure was 75 percent higher than last year‘s P20.479 billion.

Philippine Health Insurance Corp. received the highest subsidy as of October at P11.974 billion, with the amount going to health care services given to more than 10 million indigent families across the country.

The National Housing Authority was the second biggest beneficiary with P8.255 billion while the National Electrification Authority received P4.283 billion.

The National Food Authority was also among the big beneficiaries during the 10-month-period with P2 billion, followed by the Philippine Deposit Insurance Corp. (PDIC)  at P1.884 billion.

Other big beneficiaries include the National Kidney and Transplant Institute (P1.264 billion), National Irrigation Authority (P1.219 billion), and the Philippine Coconut Authority (P1.049 billion).

Total subsidies to state-owned corporations made up 2.37 percent of the government’s total expenditures as of October.

In October alone, subsidies to government-owned corporations reached P507 million, down 75 percent from P2.015 billion in the same month a year ago.

The bulk of the subsidies or P314 million went to the PDIC, while P171 million was received by PCA. Another P16 million went to the Philippine Heart Center, P4 million to the Philippine Institute for Development Studies, and the remaining P2 million to the Development Academy of the Philippines.