Subsidies to state-run firms hit P27.46B in H1

Subsidies to state-owned firms surged in the first semester, mainly due to the infusion of huge funds to Philippine Health Insurance Corp. (Philhealth) in June to expand the Aquino administration’s healthcare program.

Data from the Department of Finance showed that state subsidies totaled P27.46 billion in the first half, more than double the P12.77 billion spent in the same period last year.

The biggest beneficiary was Philhealth, which received P11.98 billion to broaden its services.

Of this amount, the bulk of P11.89 billion was granted in June, as part of the government’s thrust to provide health coverage to all Filipinos.

Total subsidies to Philhealth in the first semester was nearly six times the P2.09 billion it received in the same period last year.

In his State of the Nation Address last week, President Aquino III boasted of his administration’s achievement in the area of healthcare by saying that 81 percent of Filipinos are already covered by the health insurance program administered by Philhealth.

Meantime, the government’s bid to also boost its housing program made the National Housing Authority (NHA) the second-biggest recipient of state subsidies in the first semester.

NHA received P5.33 billion, more than four times the P1.2 billion it received in the same period last year.

The National Electrification Administration (NEA) was the third-biggest beneficiary.

It received P2.49 billion, up year on year by nearly 18 percent from P2.12 billion.

The National Food Authority was the fourth-biggest beneficiary with P2 billion, which, however, was only half of the P4 billion it received in the same period last year.

The National Kidney and Transplant Institute (NKTI) completed the list of top five beneficiaries of state subsidies in the first semester.

It received P1.13 billion, which was 976 percent more than the P105 million it got in the same period last year.

The DOF said state-owned firms were directed to improve their financial condition and lessen their reliance on the national government.

It also said the government-owned and -controlled corporations were asked to contribute more to state coffers through remittance of more dividends.

However, officials said the government was likewise eager to boost support to some state-owned firms and increase spending on priority programs, such as universal coverage of healthcare services.