State firms got P5.49B in subsidies in May

The government gave out P5.49 billion in subsidies to 26 state-owned and -controlled corporations for the month of May, the bulk of which benefited entities engaged in health, livelihood, crops and trade projects.

Documents from the Bureau of the Treasury showed that the amount indicated an increase of 93 percent from the P2.85 billion given out in the same month last year.

This also put cumulative subsidies for the five months to May to a total of P12.67 billion, decreasing by about 40 percent from P21 billion in the same period last year.

The decline in five-month spending on subsidies was observed as Malacañang admitted sluggish disbursements amid efforts to make national agencies “catch up” with planned expenditures.

The top recipient in the first five months was Philippine Health Insurance Corp., or PhilHealth, with P5.07 billion.

Also among the top five recipients during the period were the National Food Authority with P2.5 billion; National Power Corp., P2 billion; National Livelihood Development Corp. (NLDC), P1.09 billion; and National Housing Authority (NHA), P574 million.

PhilHealth was also the top recipient for May alone, getting P5 billion during the month.

Other agencies that got the biggest subsidies in May were NLDC with P205 million; Philippine Coconut Authority, P113 million; Center for International Trade Expositions and Missions, P46 million; and Philippine Children’s Medical Center, P40 million.

Last month, Budget Secretary Florencio B. Abad said executive departments and national agencies were expected to improve spending activities in the next few months as expenses so far this year continued to be lower than year-ago levels.

Abad said some agencies have, in fact, improved their disbursement performance in the five months to May, but that others still needed improvement.

He was reacting to criticisms that the government was not spending enough, possibly compromising key social services and development programs.

“The departments and agencies are now catching up with their spending,” Abad said. “With their catch-up plans in place, we are expecting further improvements in the next months ahead.”