GOCC subsidies up 51.55%

Subsidies to government-owned and -controlled corporations in the first five months of the year increased versus its year-ago level with the bulk of the subsidies intended to support the irrigation sector, preliminary data released by the Bureau of the Treasury (BTr) showed.

Latest data posted on the BTr website showed that subsidies from January to May totaled P57.047 billion, up by 51.55 percent from the P36.641 billion released in the same period last year.

The government provides financial assistance to government-owned and controlled corporations (GOCCs) to cover their operational costs that their own revenues do not fully support.

National Irrigation Administration (NIA) received the lion’s share of the subsidies released to state-run firms during the first five months of the year, amounting to P29.012 billion.

The subsidy support to NIA is often allocated for irrigation development and management in the country.

The  Power Sector Assets and Liabilities Management Corp. (PSALM) is the second biggest recipient for the period with P8 billion.

PSALM is mandated to privatize all transferred assets from the National Power Corp. with the objective of liquidating all of the latter’s financial obligations.

Other top recipients are the National Housing Authority (NHA) with P3.749 billion, National Food Authority (NFA) with P2.250 billion, and the National Electrification Administration (NEA) with P2.088 billion.

In May alone, subsidies to state-run firms amounted to P9.740 billion, 32.049 percent up from the P7.376 billion posted in the same time in 2023.

NIA is the top recipient for the month with P7.270 billion, up 72.11 percent from last year's P4.224 billion.

The Philippine Rubber Research Institute (PRRI) secured the second-highest subsidy at P629 million, while the Philippine Fisheries Development Authority (PFDA) came in third with P359 million.

Other top subsidy recipients during the month also include the Philippine Children's Medical Center (PCMC) at P207 million, and Philippine Heart Center (PHC) at P168 million.