NIA gets bulk of state subsidy | Inquirer Business

NIA gets bulk of state subsidy

By: - Reporter / @bendeveraINQ
/ 05:25 AM July 05, 2017

Subsidies given away by the government to state-run firms dropped by almost half to P4.097 billion in May even as the National Irrigation Administration received more in view of the summer season, the latest Bureau of the Treasury data showed.

The total subsidy distributed to government-owned and/or -controlled corporations (GOCCs) in May declined by 45.2 percent from P7.478 billion in the same month last year.

That month, the NIA received the biggest amount of subsidy at P3.019 billion or nearly three-fourths of the total.


The NIA, which was the GOCC responsible for irrigation system development and management in the country, was also the recipient of the largest amounts of subsidy in January and February.


At the end of the first five months, NIA got a total subsidy of P14.37 billion, or 55.5 percent of the end-May total and the biggest to date among GOCCs.

Last year, the NIA was the second largest recipient of GOCC subsidies totaling P16.909 billion, only exceeded by Philippine Health Insurance Corp.’s (PhilHealth) P43.776 billion.

During his campaign, President Duterte had promised free irrigation for farmers.

The NIA was allotted a higher P38.4 billion under the 2017 national budget not only to provide free irrigation but also to build new irrigation systems as well as rehabilitate and restore existing facilities.

An additional allocation of P2 billion was intended as irrigation fee subsidy in lieu of the collection of irrigation service fees.

According to reports, the NIA had been collecting P1.8-2 billion in irrigation service fees annually.


In all, GOCC subsidies from January to May reached P25.913 billion, up 26.1 percent from P20.547 billion a year ago.

As of the end of May, major non-financial government corporations cornered the bulk or P20.524 billion of the five-month subsidies; other government corporations, P5.056 billion, and government financial institutions, P333 million.

The Governance Commission for GOCCs earlier 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.

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Last year, the national government gave away a record P103.2 billion in subsidies.

TAGS: Bureau of the Treasury, irrigation, National Irrigation Administration

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