GOCC subsidies slashed by 50 percent in September

MANILA, Philippines — The total amount of subsidies granted by the Marcos administration to government-owned and controlled corporations (GOCCs) plunged by nearly 50 percent in September, with a significant portion of government support directed to food stability and irrigation.

According to the latest data from the Bureau of the Treasury, subsidies fell to P9.20 billion in September, from P18.22 billion in the same period last year.

The administration’s subsidies for major non-financial government corporations slightly declined by 1.45 percent to P6.81 billion from P6.91 billion in September last year.

About half of the P6.81 billion was allocated to the National Food Authority, which received the bulk of the allocation at P3.43 billion. This was followed by the National Irrigation Administration, which received P3.23 billion.

The Light Rail Transit Authority and the Philippine National Railways received P74 million and P63 million, respectively. The Metropolitan Waterworks and Sewerage System was allocated P14 million.

No subsidies were given to the National Housing Authority, the National Electrification Administration and the National Power Corp. during the period.

Meanwhile, subsidies for other government corporations plummeted by 77.6 percent, settling at P2.39 billion from P10.66 billion recorded in the same period last year, reflecting a substantial reduction in government support during the period.

The Philippine Fisheries Development Authority received about 42 percent of the total, amounting to P995 million, followed by the Philippine Crop Insurance Corp. with P443 million.

The government extends subsidies to GOCCs to cover operational expenses that their own revenues fall short of financing, ensuring uninterrupted service delivery and supporting activities that go beyond their self-generated income.

From January to September, total subsidies declined by 24.5 percent to P79.45 billion, indicating that the national government reduced its financial support to state-run firms by P25.79 billion compared to last year’s P105.24 billion.

Next year, the state health insurer Philippine Health Insurance Corp. is poised to receive the highest subsidy among GOCCs.