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Manila Bulletin devider Business devider The Economy devider NFA, NIA funding cuts drive ₱1-billion decline in gov't subsidies

NFA, NIA funding cuts drive ₱1-billion decline in gov't subsidies

Published Apr 6, 2026 12:00 am  |  Updated Apr 3, 2026 07:43 am

At A Glance

  • Massive subsidy reductions for the National Food Authority (NFA) and National Irrigation Administration (NIA) dragged down the overall subsidies the government extended to state-run firms in January 2026.
Government subsidies to state-run firms fell sharply in January as the sharp withdrawal of support for rice and irrigation agencies outweighed increased spending on small-business credit and healthcare.
Subsidies to government-owned and controlled corporations (GOCCs) dropped 23.4 percent to ₱3.4 billion in January from ₱4.4 billion a year earlier, according to data from the Bureau of the Treasury. 
Based on the Treasury report, the ₱1 billion decline was driven primarily by steep funding cuts for the National Food Authority (NFA) and the National Irrigation Administration (NIA), which historically command a significant portion of the state’s corporate support.
The NFA, the country’s grains agency, saw its monthly allocation halved to ₱1.1 billion from ₱2.3 billion in January 2025. Despite the reduction, it remained the largest recipient of government funds for the period.
Similarly, the NIA recorded a 61.8 percent plunge in support, with its budget slashed to ₱414 million from ₱1.1 billion a year ago. The contraction in agricultural support comes as the government faces ongoing pressure to manage food inflation and modernize farm infrastructure with more efficient spending.
Meanwhile, fiscal restraint among major non-financial entities stood in contrast to a surge in funding for government financial institutions and specialized health centers.
Small Business Corp., the lone financial institution to receive a subsidy in January, saw its funding jump nearly sixfold, from ₱ 63 million to ₱ 375 million, to bolster credit access for micro, small, and medium enterprises.
Other state entities saw their collective support rise 50 percent to ₱1.3 billion. The Philippine Crop Insurance Corp. received ₱240 million after receiving no funding in the same month last year.
Meanwhile, the Philippine Heart Center and the National Kidney & Transplant Institute received modest increases, with the Heart Center’s allocation rising 9.8 percemt to ₱202 million and the NKTI seeing its support inch up to ₱126 million.
These fluctuations follow a year in which total government subsidies plummeted to ₱106.9 billion, the lowest level since 2016. That decline was largely attributed to the near-total removal of funding for the Philippine Health Insurance Corp., which had dominated the subsidy rolls for a decade.

Related Tags

Subsidy National Food Authority (NFA) National Irrigation Administration (NIA) Bureau of the Treasury (BTr)
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