Benjamin Diokno
The national government gave out a total of P160.3 billion in subsidies to 61 state-owned and -controlled corporations in the 11 months ending in Nov. 30, down by 2 percent compared to the same period of 2021, while state expenses surged by a tenth.
Data from the Bureau of the Treasury show that the amount of subsidies given out in the January-November period this year eased from P163.4 billion last year.
Most of the subsidies given out in those 11 months went to health care, irrigation and housing initiatives.
The Philippine Health Insurance Corp. (PhilHealth) received the largest amount at a total of P65.4 billion.
Others among the top five recipients of subsidies were the National Irrigation Administration (NIA) with P38.4 million; National Housing Authority (NHA, P14 billion); National Food Authority (NFA, P7 billion); and National Power Corp. (P6.1 billion).
In November alone, the government spent P6.17 billion on subsidies, just half the P12.33 billion given out in the same month last year.
NIA received the month’s largest amount at P2.04 billion while PhilHealth got P1.4 billion; Civil Aviation Authority of the Philippines, P490 million; NFA, P394 Million; and NHA, P374 million.
During the 11-month period, the national government’s budget deficit was pegged at P1.24 trillion, shrinking by 7.2 percent from P1.33 trillion in the comparative period of 2021.
Expenditures jumped by 9.9 percent to P4.5 trillion from P4.1 trillion.
While subsidies to national government agencies decreased amid a surge in overall spending, Finance Secretary Benjamin Diokno said in a statement these developments were a good way to end the year.
“Our government agencies have been working hard to meet both our revenue and spending targets,” Diokno said. “We will welcome 2023 on a strong financial footing.”
He said that the domestic economy, after a modest recovery in 2021, will likely grow much faster than the official target range of 6.5 to 7.5 percent this year.
Diokno said that when full-year data has become available, it would show that all sectors will be surging, led by manufacturing and construction, while strong domestic demand is supplemented by exports.
For 2023, Diokno said the early enactment of the P5.2-trillion national budget for the year will help fuel a pace of growth that achieves the target.
With this year’s General Appropriations Act already in place, the programs and projects of the national government will start to run from day one of the new year, Diokno said. INQ