GFI subsidies cut, but ’22 total rose to ₧200B


THE total amount of subsidies extended to state-run firms by the national government rose by 8.5 percent on an annual basis to P200.41 billion in 2022, according to the Bureau of the Treasury (BTr).

Treasury data showed that total government subsidies to state-owned and -run agencies was P15.643 billion higher than the P184.767 billion recorded in 2021.

The overall increase was driven by the higher subsidies to other government corporations, which offset the 70-percent year-on-year decline in subsidies to government financial institutions.

Total subsidies extended to other government corporations reached P122.458 billion, almost 15 percent over the P106.586 billion allocated in 2021, based on Treasury data.

The other government corporations accounted for 61 percent of the total subsidies spent by the national government last year.

Philippine Health Insurance Corp. (PhilHealth) topped the list of government corporations with the biggest subsidy last year at P80.048 billion, followed by the National Irrigation Administration (NIA) at P40.622 billion.

The national government’s subsidies to PhilHealth last year, however, fell by 1.15 percent from P80.979 in 2021 while subsidies to NIA grew by 6.14 percent from P38.311 billion, according to Treasury data.

The total amount of subsidies received by major non-government financial institutions last year slightly increased to P77.514 billion from P76.709 billion, based on Treasury data.

Subsidies received by power-related agencies such as those of National Electrification Administration and the National Power Corp.—at P3.613 billion and P6.587 billion, respectively—rose last year.

The National Food Authority also received a substantial subsidy last year at P7 billion.

Meanwhile, subsidies received by the National Housing Authority fell by 33.4 percent to P17.125 billion from P25.713 billion, according to the Treasury data.

Subsidies received by the Philippine National Railway also declined by 47.68 percent year-on-year to P1.016 billion.

Those extended to the Local Water Utilities Administration likewise plunged, by a whopping 70 percent on annual basis to P218 million.

The subsidies received by GFIs declined by 70 percent to P438 million from P1.472 billion in 2021, as the Land Bank of the Philippines’ (LBP) subsidies were slashed by 99 percent.

Treasury data showed that the subsidy extended to LandBank last year was only at P5 million versus the P476 billion in 2021. Likewise, subsidies received by the National Home Mortgage Finance Corp. declined by 56 percent year-on-year to P433 million.