H1 GOCC subsidies swell at P67.21B — BTr

Government coffers saw a significant boost in the first half as subsidies granted to government-owned and -controlled corporations (GOCCs) increased.

Data from the Bureau of the Treasury showed state subsidies to GOCCs already amounted to P67.206 billion for the first half.

The number is 5.5 percent higher than last year, where the GOCCs received P63.643 billion during the first six months of the year.

The government provides subsidies to GOCCs to cover operational costs that their revenues cannot support.

Some 69.26 percent of the subsidies at P46.550 billion went to major non-financial government corporations during the first half of the year, 42.07 percent higher than last year at P32.766 billion.

Support for other government corporations reached P17.869 billion during the January to June period, slightly declining by 9.63 percent from P17.869 billion last year. It cornered 26.588 percent of the total subsidies.

The remaining P2.787 billion went to government financial institutions during the first half of the year. Last year, the GFIs only received P205 million.

The National Irrigation Administration (NIA) received the lion’s share of the subsidies during January to June period at P50.61 billion, higher than P18.346 billion last year.

NIA is responsible for irrigation development and management in the country.

The power assets holding firm Power Sector Assets and Liabilities Management Corp. (PSALM) came in second receiving P8 billion during the first six months.

The agency received 60 percent more subsidies from last year after receiving P5 billion during the January to June period.

PSALM manages the orderly sale, disposition, and privatization of National Power Corporation (NPC) generation assets, real estate and other disposable assets.

Other significant recipients during the first six months of the year included the National Housing Authority with P3.749 billion, National Food Authority with P2.250 billion, and National Electrification Administration with P2.088 billion.

June data favorable

For June alone, the budgetary support to the government-run firms declined year-on-year, but the irrigation sector remained a priority for state subsidies.

GOCCs secured P10.159 billion in June, a 61 percent drop from P26.055 billion during the same month last year.

NIA received the bulk or 73.98 percent of the subsidies at P7.516 billion. NIA received P3.083 billion in subsidies last year.

The Philippine Rubber Research Institute (PRRI) secured the second highest subsidy at P345 million. In June last year, PRRI received P28 million in subsidies.

PRRI is the agency under the Department of Agriculture that is responsible for research and development on rubber and other aspects of the industry.

The NPC came in third, receiving P302 million in subsidies in June this year. It was not able to receive any subsidies during the same month last year.

NPC is a GOCC mandated to energize far-flung, off-grid areas and islands in the Philippines.