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Manila Bulletin devider Business devider The Economy devider PhilHealth fund return drives record ₱98 billion GOCC subsidies

PhilHealth fund return drives record ₱98 billion GOCC subsidies

Published Jul 13, 2026 12:00 am  |  Updated Jul 11, 2026 12:46 pm

At A Glance

  • Government subsidies to state-run firms surged by 117.6 percent to nearly ₱100 billion as of end-May, sustained by the April boost from the massive one-time release of funds to the Philippine Health Insurance Corp. (PHIC).
Government subsidies to state-run corporations more than doubled in the first five months of the year, driven by the court-mandated release of funds to the national health insurance program.
According to the latest data from the Bureau of the Treasury, total financial support to government-owned and controlled corporations (GOCCs) jumped 117.6 percent to ₱98 billion from ₱45.1 billion in the same period last year.
The surge in subsidy spending was primarily concentrated in April, when the national government released a record ₱66.3 billion to state firms, compared with just ₱14.5 billion in the same month a year earlier.
This spike was almost entirely due to a ₱60 billion injection into the Philippine Health Insurance Corp. (PhilHealth). The adjustment represents the return of unutilized subsidy balances following a Supreme Court ruling on the administration of state insurance funds.
Data also showed that the National Electrification Administration (NEA) boosted year-to-date growth, receiving ₱3 billion last March, compared to no subsidy in the first four months of 2025 and only ₱1.3 billion in total through May of that year.
Meanwhile, the Power Sector Assets and Liabilities Management Corp. (PSALM) saw its allocation for the Murang Kuryente Act drop significantly to ₱2.5 billion from ₱8 billion in 2025.
In the agricultural sector, the government balanced food security needs with varying fiscal allocations. The National Food Authority (NFA) saw its five-month support more than double to ₱8 billion from ₱3.8 billion in 2025.
Conversely, the National Irrigation Administration (NIA), typically the largest recipient of state support, recorded a 45.2 percent decline in its total subsidy, falling to ₱8.4 billion from ₱15.3 billion last year.
Other GOCCs saw notable changes in their support levels through May. The Philippine Fisheries Development Authority (PFDA) received ₱1.9 billion, an 11.6 percent increase from ₱1.7 billion a year ago, while the Philippine Rice Research Institute (PRRI) saw its subsidy grow by 51.1 percent to ₱1.41 billion from ₱932 million.
Among financial institutions, Small Business Corp. (SBC) saw its funding double to ₱1 billion from ₱502 million a year earlier.
Funding for specialized health centers followed a declining trend compared to the previous year. The Philippine Heart Center (PHC) saw its five-month support fall by a tenth to ₱1.01 billion from ₱1.12 billion in 2025.
Similarly, the National Kidney and Transplant Institute (NKTI) saw its support drop by 22.4 percent to ₱630 million from ₱812 million during the same period last year.

Related Tags

Bureau of the Treasury (BTr) PhilHealth Subsidy
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