State subsidies up 15% to P23 billion

MANILA, Philippines — The government increased its budgetary support to state-run firms by 15 percent to almost P23 billion in the first quarter, with the bulk of the subsidies intended to support irrigation projects.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) from January to March went up by 15.3 percent to P22.59 billion from P19.59 billion in the same period last year.

During the period, subsidies for other government corporations more than doubled to P9.27 billion. The amount cornered 41 percent of the aggregate.

On the other hand, budgetary support for major non-financial government corporations reached P13.13 billion, down by 14 percent. It covered 58 percent of the entire subsidies.

The remaining one percent or P189 million went to government financial institutions, particularly SB Corp.

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

For the quarter, 36 percent of the total subsidies went to the National Irrigation Administration at P8.03 billion.

However, this was a 22-percent decrease from the P10.32 billion it received in the same period last year.

The National Food Authority (NFA) secured the second highest subsidy at P2.25 billion. This was the same level of subsidies it received for the three-month period in 2024.

Like NFA, the Philippine Crop Insurance Corp. also secured P2.25 billion. Same quarter last year, PCIC did not receive any subsidy.

The Bases Conversion and Development Authority came in third with P1.94 billion. The BCDA also did not get any budgetary support in 2024.

Other top subsidy recipients during the quarter include the National Housing Authority, Philippine Fisheries Development Authority, National Power Corp., Philippine Children’s Medical Center, Philippine National Railways, National Kidney and Transplant Institute and Philippine Heart Center.

The smallest subsidy was given to the Zamboanga City Special Economic Zone Authority with P12 million, followed by the Philippine Center for Economic Development and the Philippine Tax Academy both at P15 million and the Southern Philippines Development Authority with P21 million.

During the quarter, the government remained at a budget deficit of P478.8 billion, almost 80 percent higher from P272.6 billion in the same three-month period last year.

This came after the government still spent beyond what it generated from revenues, at a much faster pace this time around.

During the period, government spending soared by 22.4 percent to P1.48 trillion while total revenue collection only inched up by seven percent to P998.2 billion.