Subsidies to GOCCs jump 75% to P62.2B in 9 mos

MANILA, Philippines - Subsidies granted by the national government to state-controlled corporations surged by more than 75 percent in the first nine months of the year, driven by the additional funding support for health insurance, housing, food and electricity programs of the Aquino administration.

Latest data from the Department of Finance showed that subsidies reached P62.21 billion from January to September compared to P35.4 billion in the same period a year ago.

The top recipient of government funding support was the Philippine Health Insurance Corp., which received P36.31 billion or more than half of the total amount of subsidies extended during the period.

PHIC is tasked to implement the administration’s universal healthcare program, which is aimed at ensuring every Filipino shall receive affordable and quality health benefits.

Receiving the second biggest allocation was the National Housing Authority, which got P9 billion as the government ramped up the construction of housing units in communities devastated by super typhoon Yolanda.

The National Food Authority was the third biggest recipient of state aid, obtaining P4.25 billion.

The NFA, a government agency tasked to ensure ample suppy of affordable rice, has been incurring massive losses and debt since 2008. Its debt has ballooned to around P160 billion.

Substantial subsidies were also granted to the National Electrification Authority, which got P3.57 billion and the Philippine Deposit Insurance Corp. with P2.79 billion.

 In September alone, subsidies surged 80 percent to P2.96 billion with the NHA receiving the biggest amount of government financial aid followed by the National Irrigation Administration.

The higher spending for subsidies came despite the government’s push for state-owned corporations to be self-supporting. 

Last year, total subsidies to government-run firms jumped 56 percent to P66.3 billion, exceeding the P42.79 billion ceiling set by the Aquino administration.