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Friday, March 29, 2024

Subsidies to GOCCs drop by 38% in Jan-Apr period

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THE national government extended 38-percent less subsidies to companies it owns or controls from January to April this year compared to last year.

Data from the Bureau of the Treasury showed subsidies given by the national government to government-owned and -controlled corporations (GOCCs) in the first four months of the year dropped to P35.255 billion from P56.856 billion in the same period a year ago.

Most of the subsidies from January to April this year went to major non-financial government corporations that received a total of P21.762 billion. Meanwhile, the remaining P13.493 billion was taken by other government corporations. Government financial institutions have yet to receive any amount since the start of the year.

The National Irrigation Administration (NIA) received the biggest amount of subsidy during the period at P10.885 billion or equivalent to 30.88 percent of the total subsidies released from January to April.

Taking the next spot after NIA was Philippine Health Insurance Corp. (PHIC) which received P8.954 billion. It was followed by National Food Administration (P7 billion), National Housing Authority (P3.225 billion) and Bases Conversion and Development Authority (P944 million).

For April alone, the government disbursed P23.836 billion, a 30.74 percent drop from P34.416 billion in the same month last year.

In April this year, the bulk of the amount of subsidies released for the month was given to major non-financial government corporations, which received P13.704 billion while other government corporations got P10.132 billion.

The national government provides subsidies to state-run firms to fund operations not covered by the corporate revenues or to finance specific programs or projects.

Last year, the national government spent a total of P230.42 billion in subsidies to GOCCs, the highest since 1986 when the government started collecting data. The PHIC cornered the biggest allocation, receiving P62.4 billion or 27 percent of the total subsidies released during the period.

Read full article on BusinessMirror

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