GOCC subsidies jump 353% in Oct
THE NATIONAL government gave away P6.48 billion in subsidies to state-run corporations in October, 353-percent bigger than the P1.43 billion a year ago, the latest Treasury data showed.
Last October, major nonfinancial government corporations got P4.92 billion while other government corporations received P1.556 billion.
Just like in the preceding month of September, the National Irrigation Administration (NIA) was granted the biggest subsidy at the start of the fourth quarter, with P2.55 billion or almost two-fifths of the month’s total.
The other government-owned and -controlled corporations (GOCCs) that received state support in the form of subsidies in October were the Center for International Trade Expositions and Missions (P34 million), Development Academy of the Philippines (P44 million), Intercontinental Broadcasting Corp. (P6 million), Light Rail Transit Authority (P530 million), National Electrification Administration (P1.694 billion), National Kidney and Transplant Institute (P46 million), National Power Corp. (P86 million), Philippine Crop Insurance Corp. (P831 million), Philippine Fisheries Development Authority (P12 million), Philippine Health Insurance Corp. (P22 million), Philippine National Railways (P65 million), Philippine Rice Research Institute (P182 million), Southern Philippines Development Authority (P4 million) and Social Security System (P375 million).
At the end of the first 10 months, the national government distributed P62.3 billion in subsidies—P500 million for government financial institutions, P19.55 billion for major nonfinancial government corporations and P42.24 billion for other government corporations.
The end-October figure was 2.1-percent lower than the P63.64 billion in GOCC subsidies during the first 10 months of 2014.
Commissioner Maria Angela E. Ignacio of the Governance Commission for Government Owned or Controlled Corporations told reporters last Monday that up to 90 percent of GOCCs’ total subsidies were being spent on programs and projects while the rest covered operational expenses.
The government plans to ramp up budgetary support to state-run firms next year, as the Budget of Expenditures and Sources of Financing document for fiscal year 2016 showed that the proposed allotment for GOCCs would increase to P127.1 billion from the projected P74 billion this year and the P80.3 billion released in 2014.
Budgetary support for GOCCs comes in the form of subsidy, equity and net lending, net of tax subsidy and loans outlay, gross of special accounts.
Of the proposed 2016 amount, P96.1 billion would be subsidies, P31 billion would be equity and P26.5 million would be net lending.
The amount of subsidies to be given away next year would exceed the P78.9 billion released in 2014 and P72.1 billion programmed for release this year.
