Government cuts subsidies to P9.4 billion in February

MANILA, Philippines — The government reduced its budgetary support to state-run firms by 26 percent to P9.4 billion in February, with the bulk of the subsidies meant to fund irrigation projects.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) in February went down by 26 percent to P9.4 billion from P12.69 billion in the same period last year.

During the month, budgetary support for major non-financial government corporations reached P7.5 billion, up by 76 percent.

However, subsidies for other government corporations plummeted by almost 80 percent to just P1.86 billion from P8.42 billion a year ago.

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

For February, nearly a third of the total subsidies went to the National Irrigation Administration (NIA) at P6.79 billion.

This is a more than 160 percent jump from the P2.57 billion it received in the same period last year.

The National Food Authority secured the second highest subsidy at P637 million, while the Philippine Heart Center came in third with P294 million.

Other top subsidy recipients during the month include the health sector through the National Kidney and Transplant Institute and Philippine Children’s Medical Center.

The agriculture industry also secured subsidies via the Philippine Coconut Authority, National Dairy Authority and the Philippine Rice Research Institute.

For the two-month period, subsidies went down by 32 percent to P10.51 billion from P15.56 billion a year ago.

For January to February, budgetary support for major non-financial government corporations reached P8.61 billion, up 26 percent, while subsidies for other government corporations slipped by 80 percent to just P1.76 billion.

In February, the government reverted back to a budget deficit of P106.4 billion after a quick surplus of P46 billion at the start of the new year as revenues declined.

During the month, overall government expenditures just barely moved at P318.2 billion but revenues slightly went down by 0.25 percent to P211.9 billion.