GOVERNMENT subsidies to 35 state-owned and -controlled corporations and institutions were slashed by 37.6 percent in October as the budget deficit breached the full-year target limit with still two months to go.

Documents from the Bureau of the Treasury showed that the government gave out P1.96 billion in subsidies in October compared to the P3.14 billion it released in the same month last year.

About three-fourths or P1.5 billion of the subsidies last month went to the Light Water Utilities Administration.

This was the third month of the year when LWUA got subsidies, having received P400 million in July and P50 million in August.

There were only six other recipients in October, including entities engaged in initiatives related to housing, livelihood, transportation, electricity, health and communications.

The National Housing Authority (NHA) was allotted P151 million; National Livelihood Development Corp., P139 million; People?s Television Network Inc., P100 million; and National Electrification Administration and National Kidney and Transplant Institute, P4 million each.

For the first 10 months, the government spent P14.52 billion in subsidies, increasing by 4.53 percent from P13.89 billion given out in the same period last year.

The top five recipients in the 10-month period were the NHA (P3.85 billion), National Food Authority (P2 billion), LWUA (P1.96 billion), Philippine National Railways (P1.12 billion), and National Housing Mortgage Financing Corp. (P900 million).

Earlier this week, the Department of Finance reported that the budget deficit hit P266.1 billion in the 10 months to October, overshooting the full-year target limit of P250 billion by 6.4 percent.

Finance Secretary Margarito B. Teves said the swelling continued to be due to weak revenue collection amid the economic slowdown.

Teves said the overspending was likely to reach P280 billion or even P300 billion in a worst-case scenario.

The finance chief earlier said overspending could reach P300 billion unless the Supreme Court decides in favor of the government regarding the ownership of the 24-percent stake in San Miguel Corp., privatization of which is expected to yield some P50 billion.

Still, Teves said a deficit of P300 billion was ?still acceptable given the current domestic and global environment.?