GOCC subsidies down 55% to P2.15B in April

Subsidies extended to state-run companies fell by more than half to P2.15 billion in April, the latest Bureau of the Treasury data showed.

The government subsidy distributed to government-owned and/or -controlled corporations last April declined 55.4 percent from P4.825 billion in the same month last year.

In April, major nonfinancial government corporations received a total of P298 million in subsidies, while other government corporations got P1.852 billion.

The Bases Conversion and Development Authority was the recipient of the biggest chunk of subsidy in April at P669 million.

The BCDA Group was mandated to “transform former military bases and properties into premier centers of economic growth,” it said on its website.

“Since its creation in 1992 until end-2015, the BCDA has generated P72 billion from the disposition of former Metro Manila camps,” it added.

As of end-April, GOCC subsidies reached P21.816 billion, up 66.9 percent from P13.069 billion in the first four months of 2016.

The Governance Commission for GOCCs had said that up to 90 percent of the subsidies that state corporations receive were being spent on programs and projects, while the remainder covered operational expenses.

For 2017, the government had programmed to grant P128.9 billion in subsidies to GOCCs.

Last year, the government gave away a record P103.2 billion in subsidies. –BEN O. DE VERA