GOCC subsidies rise to P200 billion in 2022

MANILA, Philippines — Budgetary support to state-run firms inched up by eight percent to P200 billion last year, largely to finance the health and agriculture sectors, even amid a tight fiscal space.

Latest data from the Bureau of the Treasury showed subsidies to government-owned and controlled corporations (GOCCs) rose to P200.41 billion in 2022 from P184.77 billion in 2021.

Some 61 percent of the subsidies went to other government corporations, up 15 percent to P122.46 billion from P106.59 billion in 2021.

Support for major non-financial government corporations reached P77.51 billion, inching up by just a percentage from the 2021 level of P76.71 billion. It cornered 38 percent of the total subsidies.

The remaining one percent, at P438 million, went to government financial institutions. This recorded a 70 percent decline in subsidies after an almost 100 percent reduction for the Land Bank of the Philippines to just P5 million, the lowest subsidy last year.

The government grants subsidies to GOCCs as a way to cover operational expenses not supported by their own revenues.

Last year, bulk or 40 percent of the subsidies went to the Philippine Health Insurance Corp. at P80.05 billion.

In 2021, PhilHealth also received the largest subsidies among all GOCCs at nearly the same level as the government dealt with the pandemic.

The National Irrigation Administration secured the second highest subsidy at P40.66 billion, higher than its previous allocation of P38.31 billion.

The National Housing Authority came in third with P17.13 billion, but this was 33 percent lower than its subsidies in 2021 at P25.71 billion.

Among other recipients of large subsidies last year include PSALM Corp. (P8 billion), National Food Authority (P7 billion), National Power Corp. (P6 billion), Philippine Fisheries Development Authority (P5.6 billion), and Bases Conversion and Development Authority (P4.58 billion).

On the other hand, apart from Landbank, the smallest subsidies went to Cagayan Economic Zone Authority (P19 million), Duty Free Philippines Corp. (P34 million), Aurora Pacific Economic Zone and Freeport (P48 million), National Tobacco Administration (P50 million), IBC-13 (P72 million), Southern Philippines Development Authority (P82 million), and the Philippine Tax Academy (P96 million).

In 2022, overall government expenditures went up by 10.35 percent to P5.16 trillion while revenues improved by 18 percent to P3.55 trillion.

The budget deficit last year eased to P1.61 trillion.