Gov’t subsidy to GOCCs doubles in January

MANILA, Philippines - The government extended P667 million in subsidies to state-owned companies in January, more than double the P287 million extended in the same month last year.

Data from the Department of Finance showed that the amount went to just one recipient, the Philippine Postal Corp. (Philpost)

The Government Service Insurance System (GSIS) has restored the full benefits of nearly 7,000 Philpost employees in the National Capital Region following the reconcilation of service records of Philpost workers.

Under the agreement, Philpost will pay about P110 million representing unpaid premiums from June 24, 1997 to Nov. 30, 2012.

 Since July 2012, the GSIS has concluded 47 agreements with the postal agency, which allowed more than 20,500 employees to be reintegrated into the full coverage of the state pension fund.

Subsidies form part of the government’s expenditures, which amounted to P183 billion in January, up 16 percent as the Aquino administration ramped up spending for reconstruction of typhoon-ravaged areas.

Last year, subsidies to government-owned and controlled corporations jumped by 55.56 percent, largely due to the infusion of additional funds for programs on electrification, housing and healthcare.

The government extended a total of P66.33 billion in subsidies in 2013, significantly higher than the P42.64 billion spent the previous year.

The biggest recipient was the National Electrification Authority, which got P14.03 billion or more than a fifth of the total amount of subsidies granted last year.