Subsidies to state firms fell by 36% in August
In 1st 8 months, funding declined by 15% to P14.8BBy Ronnel W. Domingo
Philippine Daily Inquirer
MANILA, Philippines—The government gave out P1.4 billion in subsidies to state-owned and -controlled corporations in August, a big part of which was allocated to those engaged in housing, irrigation, crops and health.
Data from the Bureau of Treasury (BTr) showed that the amount was 36 percent lower than the P2.1 billion given out in the same month of 2011.
As a result, cumulative subsidies to state firms for the first eight months of the year totaled P14.8 billion—14.9 percent less than the P17.4 billion given out in the same period last year.
From January to August, the amount of subsidies declined even as the government’s total spending went up by 14.5 percent during the eight-month period.
According to Budget Secretary Florencio B. Abad, expenses for August alone went up by 10.4 percent as Malacañang continued to pour funds into infrastructure, apart from other capital outlays and other operating expenditures.
Abad said the expenditures would speed up the rollout of key infrastructure projects which, in turn, would boost the country’s viability as “the next investment and tourism hub in the region.”
The budget chief added that the deployment of account management teams in key departments led to improved disbursement.
In the first eight months, the top recipient of subsidies, in terms of cumulative receipt, was the National Food Authority with P4 billion.
Others were the National Housing Authority with P2.4 billion, Philippine Health Insurance Corp. with P2.1 billion, National Electrification Administration with P1.6 billion, and National Irrigation Administration P1.3 billion.
In August alone, the National Housing Authority was also the top recipient, getting P600 million, or close to half the total subsidies disbursed during the month.
Short URL: http://business.inquirer.net/?p=84782