Subsidy to state firms jumped 30% in April
Subsidies to state-run firms jumped by almost a third to P5.115 billion in April as the government extended more financial assistance to agencies that were assisting farmers and fisherfolk amid a prolonged dry spell due to El Niño.
The latest Bureau of the Treasury data showed that the amount of subsidies extended to government-owned and/or -controlled corporations (GOCCs) in April climbed 32 percent from P3.9 billion a year ago.
The top three recipients of subsidies that month were the National Irrigation Administration (NIA), with P3.797 billion; Philippine Crop Insurance Corp. (PCIC), P644 million, and the Philippine Rice Research Institute (PhilRice), P147 million.
In a separate report, the Department of Budget and Management (DBM) attributed the higher GOCC subsidies in April to “payment of prior year’s accounts payables of the NIA (P3.1 billion) for its completed irrigation projects, as well as the payment for the previous year’s government premium subsidy to Philippine Crop Insurance Corp. (about P600 million) for the insurance premiums of subsistence farmers and fisherfolk.”
For January to April, total subsidies dropped 70.7 percent to P14.419 billion from P49.2 billion a year ago.
As of end-April, the GOCCs that received the biggest subsidies were the NIA, P9.566 billion; National Food Authority (NFA), P1.065 billion, and PCIC, P644 million.
About 90 percent of the subsidies that state corporations are getting are being spent on priority programs and projects. The rest covers operational expenses.
GOCCs are also being provided budgetary support by the national government via equity and net lending.