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Philippines: GOCC subsidies drop 70% in February
MANILA, Philippines — The national government extended P2.77 billion in subsidies to government-owned and-controlled corporations (GOCCs) in February, the bulk of which went to irrigation and agriculture programs, according to the Bureau of the Treasury (BTr).
Based on the latest cash operations report of the Treasury, government subsidies to state corporations reached P2.77 billion in February, nearly 70 percent lower than the P9.13 billion recorded in the same month last year.
As a result, GOCC subsidies in the first two months of the year amounted to P3.56 billion, also down by 64.53 percent from P10.05 billion in the same period in 2018.
The national government provides subsidies to state firms to cover their funds for programs and projects, as well as operational expenses.
Based on BTr data, 19 GOCCs received budgetary support last February.
The National Irrigation Administration (NIA) received the bulk of total subsidies during the month, amounting to around P1.75 billion. The agency implements irrigation projects all over the country, and provides free irrigation to small scale farmers.
This was followed by the Small Business Corp., which was granted P208 million, and the Philippine Fisheries Development Authority, with P205 million.
Meanwhile, the Philippine Coconut Authority and the Philippine Children’s Medical Center were given P193 million and P112 million, respectively.
Other state-run firms who received financial support from the government last February include the Philippine Heart Center (P94 million), National Kidney and Transplant Institute (P50 million), Philippine Rice Research Institute (P49 million), Cultural Center of the Philippines (P24 million), Center for International Trade Expositions and Missions (P22 million), Lung Center of the Philippines (P17 million), and Philippine Institute for Development Studies (P11 million).
Seven other GOCCs also acquired subsidies amounting to less than P10 million each.
Subsidies to GOCCs form part of the national government’s expenditures.
In 2018, government subsidies to GOCCs amounted to P136.652 billion, 4.24 percent up from the end-2017 level of P131.088 billion in 2017.
This is, however, lower than the P162.55 billion subsidies programmed for the whole year.
GOCC subsidies are projected to increase to P187.085 billion for full-year 2019, based on the Budget of Expenditures and Sources of Financing of the Department of Budget and Management.
Meanwhile, government disbursements in 2018 reached P3.408 trillion, 20.85 percent up from P2.82 trillion in the previous year. This was also one percent above the P3.37 trillion spending program of the government during the period.
Source: https://www.philstar.com/business/2019/04/03/1906734/gocc-subsidies-drop-70-february#b3Rk9qzPZ3Wrd9jM.99