GOCC subsidies rise 3-fold in September

MANILA, Philippines — The government jacked up its budgetary support to state-run firms by almost three-fold to P23.65 billion in September, with the bulk going to the health sector, according to the Bureau of the Treasury.

Data from the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) in September soared by 158 percent to P23.65 billion from P9.16 billion in the same period last year.

During the month, budgetary support for major non-financial government corporations reached P5.17 billion, slightly down by three percent, but subsidies for other government corporations jumped almost five-fold to P18.48 billion.

The government grants subsidies to GOCCs to cover operational expenses that are not supported by their own revenues.

For September, nearly half or 47 percent of total subsidies went to the Philippine Health Insurance Corp. at P11.23 billion.

Same period last year, PhilHealth did not get any subsidy from the government.

The National Irrigation Administration secured the second highest subsidy at P2.66 billion, while the Bases Conversion and Development Authority came in third with P2.41 billion.

Other top recipients during the month include the Philippine Crop Insurance Corp. with P2.14 billion, National Power Corp. with P1.32 billion, National Food Authority with P1.04 billion, and the Philippine Fisheries Development Authority with P1.07 billion.

During the month, GOCCs that did not get any subsidy are the National Home Mortgage Finance Corp., Local Water Utilities Administration, National Electrification Administration, National Housing Authority, National Tobacco Administration, Small Business Corp., Subic Bay Metropolitan Authority, and the Sugar Regulatory Administration.

For the nine-month period, subsidies slipped by 22 percent to P114.25 billion from P145.88 billion a year ago.

From January to September, budgetary support for major non-financial government corporations reached P47.61 billion, down 9.69 percent, while subsidies for other government corporations dropped by 28 percent to P66.33 billion.

In September, government expenditures went up by 14 percent to P468.6 billion while revenues improved 25 percent to P288.8 billion.

The budget deficit during the month was almost flat at P179.8 billion.

Subsidies for GOCCs dipped almost 20 percent to P185 billion last year after the government slowly removed budgetary support for state-run firms as the economy reopens from the pandemic.