Close  

Subsidy to state firms jumped 30% in April

By: - Reporter / @bendeveraINQ
/ 05:01 AM June 17, 2019

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.

ADVERTISEMENT

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.”

FEATURED STORIES

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.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: farmers, financial assistance, fisherfolks, subsidy
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.