GOCC subsidies up 156% to P53.7B in ’11

The government gave out P53.7 billion in subsidies to 41 state-owned and -controlled corporations and similar entities in 2011, most of the fund going to those engaged in housing, health and power.

Data from the Bureau of the Treasury (BTr) showed that the amount was 156 percent higher than the P21 billion released in 2010.

In December alone, subsidies for state institutions reached P8.5 billion—81 percent more than the P4.7 billion reported in the same period the previous year.

That same month, the government marked a record high in monthly spending of P211.7 billion, according to the Department of Budget and Management.

The top recipient of subsidies in 2011 was the National Housing Authority, accounting for 30 percent of the year’s total with P16.197 billion.

The government has set a goal of serving 190,000 households, out of the estimated 1.38 million that need housing services in 2011, the Housing and Urban Development Coordination Council said.

In the first semester of 2011, NHA services covered 10,508 households, undertaking programs such as resettlement, slum upgrading, and acquisition and development of raw land. Also, the government estimates that from 2011 to 2016, some 5.73 million households will require services.

For the same period, government agencies hope to provide direct housing services to 1.48 million households—just about a fourth of demand.

Among the top five recipients of subsidies in 2011 were the Land Bank of the Philippines with P7.932 billion; Philippine Health Insurance Corp., P6.639 billion; National Power Corp. (Napocor), P6.624 billion; and National Food Authority, P2.525 billion.

In December, the top recipient was Napocor, getting some P3 billion in subsidies—35 percent of the total for the month.

Other agencies that received the biggest subsidies in December were the NHA with P1 billion; National Electrification Administration, P809 million; Philippine Institute for Development Studies, P562 million; and National Home Mortgage Finance Corp., as well as the Philippine Fisheries Development Authority, both with P500 million.

Earlier this week, the Bureau of the Treasury reported that state spending throughout 2011 reached P1.578 trillion—only 91 percent of the planned P1.711 trillion for the full year.