Subsidies down 75% to P729M in September

THE NATIONAL government distributed P729 million in subsidies to state-run corporations last September, or three-fourths lower than the P2.96 billion given away a year ago, the latest Treasury data showed.

In September, major non-financial government corporations received P296 million while other government corporations got P433 million.

The National Irrigation Administration (NIA) was the recipient of the biggest subsidy last September worth P271 million.

The other government-owned and -controlled corporations (GOCCs) that were granted state support in the form of subsidies in September were the Cultural Center of the Philippines (P34 million), Center for International Trade Expositions and Missions (P26 million), Lung Center of the Philippines (P17 million), Philippine Center for Economic Development (P7 million), Philippine Children’s Medical Center (P43 million), Philippine Heart Center (P32 million), Philippine Institute for Development Studies (P20 million), Philippine National Railway (P25 million), People’s Television Network Inc. (P8 million), Small Business Guarantee and Finance Corp. (P50 million), Social Housing Finance Corp. (P188 million), Southern Philippines Development Authority (P4 million) and Zamboanga City Special Economic Zone Authority (P4 million).

At the end of the first nine months, the national government has extended P55.82 billion in subsidies—P500 million for government financial institutions, P14.63 billion for major non-financial government corporations, and P40.69 billion for other government corporations.

The end-September GOCC subsidies were down by a tenth from P62.21 billion last year.

In most cases, the national government subsidy covers the GOCCs’ operational expenses that are not being supported by corporate revenues. Subsidies may also be spent on specific programs and projects.