GOCC subsidies jump 180.5% to P9.02B
Subsidies given away by the national government to state-run firms almost tripled during the first five months, with the National Food Authority (NFA) receiving the biggest amount last May.
The latest Treasury data showed that subsidies to government-owned and -controlled corporations (GOCCs) as of end-May jumped 180.5 percent to P9.02 billion from P3.22 billion in the same five-month period last year.
Of the end-May amount, major non-financial government corporations had the biggest share of P6.16 billion. Other government corporations received P2.61 billion while government financial institutions got P250 million.
In the month of May alone, subsidies to GOCCs rose 161.7 percent to P4.55 billion—the biggest monthly amount so far this year—from P1.74 billion a year ago.
Last May, the NFA was granted the bulk or P4.25 billion in subsidies. In recent years, the national government subsidizes the NFA’s food staples sufficiency program as well as local procurement.
The other GOCCs that were recipients of subsidies in May were Philippine Deposit Insurance Corp. (P166 million), National Power Corp. (P96 million), Philippine National Railways (P26 million), Southern Philippines Development Authority (P7 million) and Light Rail Transit Authority (P1 million).
For most cases, the national government subsidy covers GOCCs’ operational expenses that are not being supported by corporate revenues. Subsidies may also be spent on specific programs and projects. Besides the grant of subsidies, the government also extends financial support to GOCCs through equity and net lending.
Last year, the government gave away P80.44 billion in subsidies to GOCCs—the highest annual amount to date.
