The amount of subsidies extended by the government to state corporations in the first half dropped by three-fifths and fell below the six-month program as the delayed budget approval also held up cash transfers to poor families affected by the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Subsidies to government-owned and/or -controlled corporations (GOCCs) from January to June went down by 60.6 percent to P26.7 billionfrom P67.7 billion last year and 45.9 percent lower than the P49.4-billion program for the six-month period, Bureau of the Treasury data showed.
On subsidies to poor families, the Department of Budget and Management said there were “delays in the release of cash grants under the unconditional cash transfer program” being disbursed by Land Bank of the Philippines and the Department of Social Welfare and Development (DSWD) to families affected by the higher taxes on consumption under TRAIN law.
“In the first semester of 2018, more than P24 billion was released for the unconditional cash transfer program. For this year, however, request for release of the cash grants was only made in the latter part of June in view of the late budget approval and election ban,” the DBM said.
BTr data showed that while Landbank got P17.3 billion in subsidies in the first half of last year mainly for the cash transfers, it did not receive any as of June this year.