State firms receive P4.1B in subsidies

The government released P4.1 billion in subsidies to state-owned and -controlled corporations in March, the bulk of which went to entities engaged in health, housing, livelihood and farming.

Data from the Bureau of the Treasury (BTr) showed that the amount was about half more than the P2.76 billion given out in the same month of 2011.

This brought cumulative subsidies to state firms for the first quarter to P5.1 billion—28 percent less than the P7.1 billion reported in the same period last year.

The decrease in first-quarter spending on subsidies was observed as Malacañang spent less than what had been programmed for January to March.

According to the Department of Budget and Management, key departments and agencies such as the departments of Education, Agriculture, Social Welfare and Development, Health, Public Works and Highways and Transportation and Communications all need to optimize releases made to them and push for more vigorous disbursements.

“If we are to pick up spending over the next few months, agencies must ensure that they are able to execute key programs and projects within schedule,” Budget Secretary Florencio Abad said.

In the first three months of the year, the top recipient of subsidies was the Philippine Health Insurance Corp. with P2.06 billion.

The National Housing Authority also received P1.1 billion; the National Irrigation Administration, P516 million; National Livelihood Development Corp., P370 million; and Philippine Coconut Authority, P296 million.

In March alone, Philippine Health Insurance was also the top recipient, getting all of its first-quarter subsidy during the month.

Other agencies that got the biggest subsidies in March were the National Housing Authority with P1.1 billion; National Livelihood Development Corp., P370 million; National Irrigation Administration, P172 million; and Philippine Coconut Authority, P99 million.

Last week, the BTr reported that state aggregate spending in the three months to March reached P394.88 billion, or P45.7 billion less than the P440.59-billion set in the expenditures program.

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