GOCCs get P78-B subsidy in ’15

STATE-RUN corporations received a total of P78.013 billion in subsidies last year, down 3 percent from the record amount given away in 2014, latest data from the Bureau of the Treasury showed.

The national government’s subsidies to government-owned and/or -controlled corporations (GOCCs) in 2015 were below the previous year’s P80.44 billion—the highest annual amount to date.

Subsidies cover GOCCs’ operational expenses not supported by corporate revenues. Aside from the grant of subsidies, the national government also extends financial support to GOCCs through equity and net lending.

Last year, the recipient of the largest share of government subsidies was Philippine Health Insurance Corp. (PhilHealth), which got P34.871 billion or 44.7 percent of the total.

The four other GOCCs that received big subsidies were National Irrigation Administration (NIA), P11.677 billion; National Housing Authority (NHA), P11.208 billion; National Food Authority, P4.25 billion; National Electrification Administration, P4.177 billion.

The Budget of Expenditures and Sources of Financing for fiscal year 2016 showed the proposed allotment for GOCCs would increase to P127.1 billion.

Of the amount, P96.1 billion would be for subsidies, P31 billion would be for equity, and P26.5 million would be for net lending. Ben O. de Vera