Subsidies to state firms down by 13.7% in HI
The government gave out P12.2 billion in subsidies to state-owned and -controlled corporations in the first semester.
The bulk of the amount went to state firms engaged in projects related to food, health, electricity, housing and crops.
Data from the Bureau of Treasury (BTr) showed that the amount was about 13.7 percent lower than the P14.2 billion given out in the same period last year.
In June, alone, subsidies to state firms hit P820 million, or 45 percent less than the P1.5 billion extended a year ago.
The drop in the January-June subsidies to GOCCs was observed despite a 13.8-percent year-on-year increase in the government’s overall spending during the period.
Budget Secretary Florencio B. Abad said the rise in government spending was largely due to disbursements for infrastructure and other capital outlays, which went up by 66.1 percent, and for maintenance and other operating expenses, which rose by 41.1 percent.
Abad said that with government disbursements in the second quarter growing faster than that in the first quarter, Malacañang was confident that government spending would again make a significant contribution to economic growth.
He said public spending was a significant contributor to the 6.4-percent gross domestic product growth in the first quarter.
Also last month, the BTr reported that the state’s aggregate spending in the six months to June reached P795.4 billion, or 90 percent of the program for the period.
As for cumulative expenses on subsidies to state firms, the top recipient in the first six months was the National Food Authority (NFA), which got P4 billion.
The others in the top five were Philippine Health Insurance Corp., or PhilHealth, P2.1 billion; National Electrification Administration with P1.6 billion; National Housing Authority, P1.2 billion; and Philippine Coconut Authority, P836 million.
For June alone, the National Irrigation Authority was the top recipient, getting P257 million or about a third of total subsidies for the month.
Other top recipients in June were PCA, P180 million; Center for International Trade Expositions and Missions, P98 million; Philippine Children’s Medical Center, P90 million; and Local Water Utilities Administration, P64 million.