Subsidies to state firms down by 61% in January

The government extended P441 million in subsidies to 18 state-owned and -controlled corporations and similar entities in January, most of it going to those engaged in rural projects and health programs.

Data from the Bureau of the Treasury (BTr) showed that the amount was 61 percent lower than the P1.1 billion given out in the same month last year.

The decrease in the January spending on subsidies was observed despite what the Department of Budget and Management described as a trend-breaking jump in government expenditure during the month.

The top recipient of subsidies in January was the National Irrigation Administration with P172 million, or 39 percent of the total for the month.

Others in the top five were the Philippine Coconut Authority with P98 million; Philippine Rice Research Institute, P28 million; Philippine Children’s Medical Center, P26 million; and National Kidney and Transplant Institute, P23 million.

Budget Secretary Florencio B. Abad said the government’s expenditure performance rose to P142.3 billion in January, a 16.2-percent increase from the P122.5-billion reported in the same period last year.

“The current expenditure rate runs counter to the previous years’ trends, where January spending usually registers a much slower pace,” Abad said.

The budget chief explained that higher spending on maintenance and other operating expenditures (MOOE) and infrastructure fueled the increase in total spending during the month.

MOOE spending posted a year-on-year increase of 21.9 percent, or P3.6 billion, while infrastructure spending rose by 7.2 percent, or P11.5 billion.

“While our year-on-year performance is stronger, we are actively pushing for more vigorous spending in the coming months,” Abad said.