State firms get higher subsidies in Philippines

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The government ramped up its budgetary support to state-run firms by 35 percent to almost P13 billion in February, with the bulk of the subsidies intended to fund irrigation projects.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) in February went up by 35 percent to P12.72 billion from P9.4 billion in the same period last year.

During the month, support for major non-financial government corporations reached P9.78 billion, up by 30 percent.

Similarly, subsidies for other government corporations soared by 60 percent to P2.82 billion from P1.76 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 February, more than 50 percent of the total subsidies went to the National Irrigation Administration at P7.09 billion.

This was a four percent increase from the P6.79 billion it received in the same period last year.

The National Food Authority secured the second highest subsidy at P2.25 billion while the Social Housing Finance Corp. came in third with P667 million.

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

The agriculture industry also secured subsidies via the Sugar Regulatory Administration, Philippine Coconut Authority and Philippine Rubber Research Institute.

For the two-month period, subsidies remained at P12.72 billion as the government did not release any budgetary support to agencies in January.

In February, the government reverted back to a budget deficit of P164.7 billion after a quick surplus of P88 billion at the start of the new year as spending outpaced revenue collections.

During the month, overall government expenditures jumped by 22 percent to P388.7 billion while revenues only inched up by 5.73 percent to P224 billion.