Home Business GOCC subsidies fell by 14% in September

GOCC subsidies fell by 14% in September

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GOCC subsidies fell by 14% in September

SUBSIDIES PROVIDED to government-controlled corporations (GOCCs) fell by 14% annually in September, according to the Bureau of the Treasury (BTr).

The latest data from the Ministry of Finance shows that budget support to GOCCs fell by 14.33% to €18.22 billion in September, compared to €21.26 billion in the same month a year ago.

Month-on-month, GOCC subsidies doubled (100.19%), compared to P9.1 billion in August.

State-owned enterprises receive monthly subsidies from the National Government (NG) to support their daily operations if their revenues are assuredfficient.

In September, the Philippine Health Insurance Corp. (PhilHealth) the largest amount of subsidies: P9.34 billion, accounting for 51.27% of the total.

This was the second time PhilHealth received subsidies this year, after the P260 million it received in June.

The National Irrigation Authority (NIA) received the second largest amount of government subsidies this month with P5.5 billion, followed by the National Electrification Administration with P1.01 billion.

Several GOCCs received at least P200 million in subsidies, including the Philippine Crop Insurance Corp. (P353 million), Philippine Heart Center (P348 million), Social Housing Finance Corp. (P284 million) and the National Kidney and Transplant Institute (P223 million). ).

At least P100 million in grants were given to the Philippine National Railways (P171 million), Philippine Children’s Medical Center (P151 million), National Power Corp. (144 million) and the Philippine Coconut Authority (P112 million).

State-owned enterprises that received at least P50 million include the Cultural Center of the Philippines with P80 million, Light Rail Transit Authority with P72 million, Lung Center of the Philippines with P70 million, Development Academy of the Philippines with P64 million, and the Tourism Promotions Board with P54 million.

In September, no subsidies were given to the Bangko Sentral ng Pilipinas, National Home Mortgage Finance Corp., Philippine Deposit Insurance Corp., Small Business Corp. and the National Housing Authority.

GOCCs that also did not receive subsidies during the month include the National Food Authority, Bases Conversion and Development Authority, Philippine Fisheries Development Authority, Philippine Postal Corp., Power Sector Assets and Liabilities Management Corp. (PSALM) and the Tourism Infrastructure and Enterprise Zone Authority.

During the January-September period, GOCC subsidies declined 23.25% to P105.24 billion from P137.13 billion in the same period last year.

The NIA remained the largest recipient of subsidies in the nine-month period with P54.38 billion, followed by PhilHealth (P9.6 billion) and PSALM (P8 billion).

Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp., said GOCCs received fewer subsidies in September “amid the need to better manage/reduce the NG budget deficit through more disciplined government spending.”

The NGs will be available from the end of September FThe financial gap narrowed slightly by 1.35% to 970.2 billion euros, compared to 983.5 billion euros a year ago.

“Grants are declining for many reasons, likely due to: the reallocation of funding from grants to disaster relief and recovery, social improvement and protection programs; and the increased proFit is one of the GOCCs – which justifies the NG to reallocate funds for other urgent matters such as infrastructure spending, DRRM (disaster risk reduction and management) response and social protection programs,” said Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera via Viber.

In the coming months, the government should increase its subsidies to GOCCs involved in education and nutrition, Mr Ricafort said.

“GOCCs [that should receive higher subsidies] include those needed by the poorest, and those that would have the greatest impact in society, such as healthcare, nutrition, and even others related to education and boosting productivity,” he said in a Viber message. — Beatriz Marie D. Cruz

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