Subsidies to state-owned companies surged in the first 10 months of the year due to the infusion of more public funds for the government’s healthcare, housing and electrification programs.
The Department of Finance reported that, from January to October, the subsidies amounted to P35.9 billion—up by 79 percent year-on-year.
The biggest recipient of financial support from the government was the Philippine Health Insurance Corp. (Philhealth), which was tasked to implement the government’s universal healthcare program.
The second biggest recipient was the National Housing Authority (NHA), which received P8.25 billion.
The Department of Budget and Management earlier said that the NHA received more funding so it could implement the relocation of informal settlers living in disaster-prone areas, particularly near waterways, in Metro Manila.
The third biggest recipient was the National Electrification Administration, which is tasked to provide electricity throughout the country.
Other state-owned firms that received at least a billion pesos in subsidies in the first ten months of the year were the National Food Authority, with P2 billion; Philippine Deposit Insurance Corp. (PDIC), with P1.9 billion; National Irrigation Administration, with P1.22 billion; National Kidney and Transplant Institute, with P1.2 billion; and Philippine Coconut Authority (PCA), with P1 billion.
In October alone, subsidies to government-run companies amounted to P507 million, down year-on-year by 77 percent.
The biggest recipients of subsidies during the month were Philippine Deposit Insurance Corp. and Philippine Coconut Authority, which got P314 million and P171 million, respectively.
The jump in spending for subsidies in the first ten months partially drove the increase in overall government expenditures during the period.
The Finance department reported last week that, from January to October, government expenditures reached P1.51 trillion—up by 10.2 percent from that of a year ago.
Apart from additional subsidies granted to state-run firms, higher disbursements for infrastructure was cited for boosting government expenditures during the period.
Officials said the increase in government spending was meant to help maintain the economy’s robust pace of expansion.