Summer-hit NIA gets biggest gov’t subsidy | Inquirer Business

Summer-hit NIA gets biggest gov’t subsidy

By: - Reporter / @bendeveraINQ
/ 05:36 AM June 23, 2018

As the summer season continued to scorch farms and their produce, the national government gave more subsidies to National Irrigation Administration (NIA) in April, bringing financial support to state-run corporations that month to a higher P3.9 billion.

Subsidies to government-owned and/or -controlled corporations (GOCCs) in April jumped 80.2 percent from P2.2 billion in the same month last year, although lower than the P35.2 billion given away in March, the latest Bureau of the Treasury data showed.

In April, five major nonfinancial government corporations received P2.8 billion, while 17 other GOCCs got P1.1 billion.


The government released P2.6 billion to NIA that month, bringing the agency’s end-April subsidies to P10.9 billion.


NIA also received the biggest monthly subsidy in January and February.

The GOCC is mainly responsible for irrigation development and management. It was granted the second largest amount of subsidy worth P30.2 billion last year in order to fund President Duterte’s campaign promise of free irrigation for farmers.

From January to April, GOCC subsidies climbed 125.3 percent to P49.2 billion from P21.8 billion in the same four-month period last year.

During the first four months, Philippine Health Insurance Corp. got the biggest chunk of subsidies with P15.2 billion. It received P15.1 billion in March.

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

The national government also provides budgetary support to GOCCs through equity and lending.

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TAGS: government subsidy, NIA

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