Subsidies to state-run firms plunge 77% in October
At A Glance
- In October, government subsidies to government owned and controlled corporations (GOCCs) decreased by 77% to P9.19 billion from the previous year's P39.92 billion.<br>The National Irrigation Administration received 44.6% of the subsidies, totaling P4.1 billion, with National Food Authority and National Housing Authority also receiving significant amounts.<br>The top three GOCCs accounted for 78.9% of the government's total expenses for the month.<br>Other GOCCs and organizations, including the Light Rail Transit Authority and various medical and development institutions, also received government subsidies.<br>The 10-month GOCC subsidy totaled P146.31 billion, down 10% from the previous year, representing 74.7% of the full-year budget of P195.7 billion.
The Bureau of the Treasury reported that state-run companies' financial independence strengthened in October this year, as the national government's subsidy to these corporations decreased.
Based on the Treasury bureau’s report, the total subsidies granted to government owned and controlled corporations (GOCCs) fell by 77 percent to P9.19 billion last October from P39.92 billion in the same month in 2022.
The Treasury said that nearly half of the government’s subsidies, or 44.6 percent, were allocated to the National Irrigation Administration, totaling P4.1 billion.
The National Food Authority followed with P2 billion, and the National Housing Authority with P1.15 billion.
The subsidies to the three GOCCs already represented 78.9 percent of the government’s total expenditures for the month.
The Light Rail Transit Authority also received P766 million in government funding, while the Philippine Children and Medical Center got P179 million, the Philippine Heart Center received P178 million, and the National Kidney and Transplant Institute received P116 million.
Other GOCCs that were given subsidies included the National Power Corp., Philippine Ports Authority, Philippine National Railways, Aurora Pacific Economic Zone and Freeport Authority, Cultural Center of the Philippines, and Credit Information Corp.
Additionally, the Center for International Trade and Expositions and Missions, Development Academy of the Philippines, International Broadcasting Corp., Lung Center of the Philippines, and National Dairy Administration received monetary support from the government.
The list of recipients also included the Philippine Coconut Authority, Philippine Center for Economic Development, Philippine Rice Research Institute, Philippine Institute for Development Studies, and Philippine Institute of Traditional and Alternative Health Care.
Furthermore, the Philippine Tax Academy, Philippine Television Network Inc., Southern Philippines Development Authority, Social Security System, Tourism Infrastructure and Enterprise Zone Authority, Tourism Promotion Board, and Zamboanga City Special Economic Zone were among the entities that enjoyed state subsidies.
The GOCC subsidy in October brought the national government's total for the first 10 months to P146.31 billion, reflecting a 10 percent decrease compared to P162.17 billion in the same period last year.
The end-October figure represents 74.7 percent of the national government's full-year budget of P195.7 billion.