Subsidy to state firms doubled in October
The government gave out P12.63 billion in subsidies to state-owned and -controlled corporations and similar entities in October amid efforts to boost spending.
The amount benefited mainly those engaged in projects involving medical services, financing or agriculture and light rail systems.
Data from the Bureau of the Treasury (BTr) show that the amount was more than double the P6.28 billion extended in the same month of 2010.
This brought cumulative subsidies to 36 state firms for the 10 months to October to P31.74 billion or almost twice the P15.95 billion for the same period last year.
The increase in the 10-month spending on subsidies was observed as state economic managers say the effects of the so-called accelerated expenditure program, including the P72-billion economic stimulus plan, start to kick in.
The top recipient during the 10 months was Land Bank of the Philippines with P7.93 billion.
Last month, Budget Secretary Florencio B. Abad said the amount was disbursed to Landbank to cover landowners’ compensation for agricultural land distributed to farmers pursuant to various agrarian reform initiatives.
These include programs under the Comprehensive Agrarian Reform Law of 1988 and Presidential Decree No. 27 of 1972.
Abad said the subsidy extended to Landbank formed part of the pump-priming kitty that Malacañang announced in October in the wake of criticisms that sluggish state spending had been dragging down economic growth.
Gross domestic product growth has waned from 4.9 percent year-on-year in the first quarter, 3.4 percent in the second quarter and 3.2 percent in the third quarter.
The others in the top five recipients of subsidies from January to October were Philippine Health Insurance Corp. or PhilHealth, P6.62 billion; National Power Corp., P3.62 billion; National Food Authority, P2.5 billion, and National Housing Authority, P2.21 billion.
In October, alone, Landbank was the top recipient, getting all of the P7.93 billion in one go.
Other agencies that got the biggest subsidies in October were the Light Rail Transit Authority with P1.87 billion; PhilHealth, P1.5 billion; Philippine Heart Center, P367 million, and Philippine Children’s Medical Center, P308 million.
Last week, the BTr reported that state spending in the 10 months to October reached P1.2 trillion or only 68.6 percent of the planned P1.84 trillion.
