State-run firms receive lower subsidies in May

MANILA, Philippines — The government reduced its budgetary support to state-run firms by nearly 20 percent to P8 billion in May, with the bulk of the subsidies largely funding irrigation projects.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) in May went down by 19 percent to P7.92 billion from P9.74 billion during the same period last year.

During the month, budgetary support for major non-financial government corporations slipped by a quarter to P5.63 billion.

On the other hand, subsidies for other government corporations rose by 10 percent to P2.29 billion.

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

For May, about 45 percent of the total subsidies went to the National Irrigation Administration at P3.54 billion.

However, this was a 51-percent drop from the P7.27 billion it received in the same period last year.

The National Electrification Administration secured the second highest subsidy at P1.25 billion while the National Food Authority came in third with P750 million. Both the NEA and NFA did not receive any subsidy in May 2024.

Other top subsidy recipients during the month include the Philippine Fisheries Development Authority, Philippine Heart Center, Sugar Regulatory Administration and the Philippine Coconut Authority.

No subsidy was released to the National Housing Authority, Power Sector Assets and Liabilities Management Corp., National Power Corp., Philippine National Railways, Bases Conversion and Development Authority, Philippine Crop Insurance Corp. and Tourism Promotions Board last May.

For the five-month period, subsidies slipped by 21 percent to P45.05 billion from P57.05 billion a year ago.

From January to May, budgetary support for major non-financial government corporations reached P23.57 billion, down by 39 percent, while subsidies for other government corporations rose by 32 percent to P20.97 billion.

In May, the government recorded a lower budget deficit of P145 billion on the back of robust revenue collections and modest state spending amid the election ban.

Total revenue collection improved by 13 percent to P433.1 billion while government spending only inched up by four percent to P578.2 billion.