Gov’t to give P162.6-B subsidies in 2018 to cushion impact of tax reform to poor families
The government will be providing huge budget to subsidize several government services and consumer goods that will directly affect poor families when prices of consumer products rise due to the provisions in the tax reform program of the government. AFP FILE PHOTO/ROMEO GACAD
The government will give away to state-run corporations a record P162.6 billion in subsidies in 2018, with over P25 billion to be allocated for those to be affected when consumer prices rise due to some tax reform provisions.
Documents showed that under the proposed P3.767-trillion national budget for 2018, next year’s government-owned and controlled corporations (GOCCs) subsidies will exceed the expected P135.5 billion this year and more than P125 billion in 2015.
READ: Middle to low-income earners to be hit by Duterte tax reforms – Lagman
Next year, the Philippine Health Insurance Corp. (PhilHealth) is poised to receive the biggest chunk of subsidies worth P57.1 billion.
PhilHealth administers the National Health Insurance Program.
In 2016, PhilHealth received P43.8 billion, the largest amount of subsidies among GOCCs.
Also, the Land Bank of the Philippines will be granted P25.6 billion in subsidies next year, data showed.
National Treasurer Rosalia V. de Leon told reporters recently that P24.5 billion will be allotted for Land Bank’s implementation of the unconditional cash transfer program for poor families to be impacted by the first package of the government’s comprehensive tax reform program.
The first tax reform package was aimed at bringing down personal income tax rates while slapping new or additional taxes on consumption, which are expected to hike prices of basic goods as well as transport costs.
To recall, the Department of Finance had said the government eyes to give away unconditional cash transfers of P2,400 for one year to 10 million households to be affected by higher consumer prices.
The remaining P1.1 billion of Land Bank’s subsidies will be allocated for the public utility vehicle (PUV) modernization program, de Leon said.
The Governance Commission for GOCCs had said that up to 90 percent of the subsidies that state corporations receive were being spent on programs and projects, while the remainder covered operational expenses. JPV
