EconomyEditor's PickGOCC subsidies rise 398.78% in July

September 4, 2022

SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) rose 398.78% year on year to P30.321 billion in July, the Bureau of the Treasury (BTr) reported.

Budgetary support to GOCCs also rose 145.95% compared to the June total. Subsidies amounted to P75.01 billion in the first seven months, according to preliminary data from the BTr.

Subsidies are extended to GOCCs to cover operational expenses not supported by their revenue.

The Philippine Health Insurance Corp. (PhilHealth) was the top recipient, taking in P22.462 billion or 74.08% of all subsidies in July. It did not receive subsidies prior to July.

The National Irrigation Administration (NIA) received P5.872 billion in July, with its seven months to July total at P24.218 billion to lead all GOCCs.

The National Privacy Commission received P400 million, against zero the preceding month.

Other top recipients in July were the Development Academy of the Philippines (P214 million), the Light Rail Transit Authority (P162 million), the Sugar Regulatory Administration (P157 million), the Philippine Heart Center (P153 million), and the National Food Authority (P137 million).

Other GOCCs that were given at least P50 million were the National Kidney and Transplant Institute (P107 million), the Philippine Children’s Medical Center (P105 million), the Philippine Coconut Authority (P100 million), the Philippine Rubber Research Institute (P74 million), the Lung Center of the Philippines (P58 million), and the National Tobacco Administration (P50 million).

The Local Water Utilities Administration, the National Electrification Administration, and the National Housing Authority (NHA) were among the major nonfinancial GOCCs that did not receive subsidies.

Other GOCCs that received no subsidies during the month were the Bases Conversion and Development Authority, the Civil Aviation Authority of the Philippines, the Philippine Crop Insurance Corp., the Philippine Fisheries Development Authority, the Small Business Corp., the Subic Bay Metropolitan Authority, and the Social Housing Finance Corp.

In the seven months to July, subsidies fell 20.51% from a year earlier.

The NIA accounted for 32.29% of the total, followed by PhilHealth and the NHA, which got P22.462 billion and P8.941 billion respectively.

Government subsidies to GOCCs totaled P184.77 billion in 2021, a 19.3% decline from the previous year. In 2021, the PhilHealth received P80.98 billion, nearly 44% of the total. — Diego Gabriel C. Robles

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