Subsidies to state firms slide down by 33%
The Philippine government’s budgetary support to state-run firms fell by a third in September from a year earlier due to a sharp reduction in releases to major nonfinancial government corporations.
Data from the Bureau of the Treasury showed that subsidies to government-owned and -controlled corporations (GOCCs) dropped 33 percent to P6.13 billion in September from P9.2 billion in the same month last year.
The September drop was driven by a significant decline in releases to major nonfinancial government corporations, which fell 54.6 percent to P3.1 billion from P6.81 billion a year earlier.
Only the National Irrigation Administration received more than P1 billion. It got P2.32 billion in September, down from P3.23 billion a year earlier.
In September 2025, the National Food Authority also received P3.43 billion in subsidies, but it received only P317 million this year.
Other firms in the category received between P11 million and P307 million each.
The decline in funding for major nonfinancial corporations more than offset a 4.6-percent increase in subsidies to other government corporations, which rose to P2.5 billion from P2.4 billion.
Only two firms in this category received more than P500 million, including the Philippine Crop Insurance Corp. with P707 million and the National Dairy Authority with P681 million.
Meanwhile, the government provided P540 million to the Social Housing Finance Corp. in September, making it the only government financial institution to receive subsidies during the month.
No financial institution received funding in September last year.
Despite the September drop, subsidies to GOCCs in the first nine months of the year more than doubled to P197.92 billion from P79.45 billion a year earlier. This was largely due to hefty releases to the Philippine Health Insurance Corp. in April and August.
The nine-month tally now accounts for about 74.7 percent of the P264.82 billion total subsidy program for GOCCs for 2026.
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