The national government reduced the amount of subsidy to government owned and controlled corporations (GOCCs) in March this year, based on data from the Bureau of the Treasury.

Financial support extended to state-owned corporations amounted to P6.87 billion in March, down by 36 percent compared with the P10.79 billion registered in the same month last year.

Among the GOCCs that received a huge portion of the subsidy include the National Irrigation Administration, P3.2 billon; National Electrification Administration, P2 billion; and Philippine Fisheries Development Authority, P382 million.

Other GOCCs that received some financial support from the government were the Cultural Center of the Philippines (156 million), Philippine Health Center (P152 million), Small Business Corporation (P125 million), and Philippine Children's Medical Center (P118 million).

In addition, the National Kidney and Transplant Institute has P104 million in subsidy, while the Tourism Promotions Board got P83 billion, and P72 million for Light Rail Transit Authority.

From January to March, financial support extended to state-owned corporations amounted to P19.58 billion, down by 8 percent compared with the P21.3 billion registered in the same period last year.

The smaller subsidy to GOCCs during the month comes as the Marcos administration’s budget shortfall dropped.

The national government’s fiscal deficit declined by 11 percent to P195.9 billion, down from P210.3 billion in March 2023.

Based on the Treasury data, improved fiscal performance is attributable to the above target revenue haul of the Bureau of Customs at P74.9 billion and Bureau of Internal Revenue at P145.3 billion during the month.

Meanwhile, the Marcos administration’s public spending increased to P483.8 billion, higher compared to P468.9 billion a year ago.

“The growth of spending in March was weighed down by the lower subsidies to government corporations and transfers to local government units (LGUs), in particular, the special shares of LGUs in the proceeds of national taxes,” the Treasury said.

Finance Secretary Ralph G. Recto earlier increased the dividend rate remittance of GOCCs from their net earnings to 75 percent from the minimum of 50 percent.

GOCC dividends are sources of non-tax revenues that fund infrastructure and other social and economic programs of the government.

As of May 6 this year, the government has so far collected P88.56 billion from 47 GOCCs, which translates to an 11-fold increase from the P8 billion recorded during the same period last year.