The government ramped up its budgetary support to state-run firms by over 30 percent to P9.7 billion in May, largely to fund irrigation projects in the country.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) in May went up by 32 percent to P9.74 billion from P7.38 billion in the same period last year.

During the month, budgetary support for major non-financial government corporations reached P7.55 billion, up by 37 percent.

On the other hand, subsidies for other government corporations also picked up by 26 percent to P2.08 billion from P1.65 billion a year ago.

The government grants subsidies to GOCCs as a way to cover operational expenses that are not supported by their own revenues.

For May, nearly 75 percent of the total subsidies went to the National Irrigation Administration at P7.27 billion.

This was a 72 percent surge from the P4.22 billion it received in the same period last year.

The Philippine Rubber Research Institute secured the second highest subsidy at P629 million while the Philippine Fisheries Development Authority came in third with P359 million.

Other top subsidy recipients during the month include the health sector via the Philippine Children's Medical Center, Philippine Heart Center and the National Kidney and Transplant Institute.

During the month, no subsidy was released to the Local Water Utilities Administration, National Electrification Administration, National Housing Authority, National Food Authority, Philippine Postal Corp., Power Sector Assets and Liabilities Management Corp. and the Tourism Infrastructure and Enterprise Zone Authority.

For the five-month period, subsidies jumped by 52 percent to P57.05 billion from P37.64 billion a year ago.

For January to May, budgetary support for major non-financial government corporations reached P38.53 billion, up by 53 percent, while subsidies for other government corporations rose 30 percent to P15.83 billion.

In May, the government reverted back to a budget deficit of P175 billion after accelerated state spending outpaced the increase in revenue collections.

Government spending during the month jumped by 22 percent to P557 billion while total revenue collection only improved 15 percent to P382.1 billion.

Copyright © 2022 PhilSTAR Daily, Inc Provided by SyndiGate Media Inc. (