GOCC subsidies down 40%

The Marcos administration’s subsidies to government-owned and -controlled corporations (GOCCs) fell by nearly 40 percent in November as more agencies received no funding for the month.

Data from the Bureau of the Treasury showed that budgetary support to state-run firms had declined by 38.9 percent to P7.47 billion in November, from P12.23 billion in the same month last year.

The drop came as more GOCCs received no subsidies during the month, with 13 agencies left without budgetary support, up from nine a year earlier. This number did not include government financial institutions.

Major nonfinancial government corporations received the bulk of the November subsidies, amounting to P6.5 billion.

Among these, the National Irrigation Administration accounted for the largest share at P5.7 billion, or 76.3 percent of the total.

The National Food Authority (NFA) followed with an allocation of P750 million, marking the steepest decline among recipient agencies. Its subsidy fell by 75 percent from P3 billion in November last year.

The NFA, which has lost its regulatory powers under the current Rice Tariffication Law, can only purchase about 5 percent of the national palay output due to limited warehousing and drying capacity. Its authority is now confined to stocking rice for emergency and disaster relief.

Other government corporations received a combined P936 million in subsidies, most of which went to health-care institutions.

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The Philippine Heart Center received the largest share at P184 million, followed by the National Kidney and Transplant Institute with P124 million and the Philippine Children’s Medical Center with P106 million.

No funding went to the National Housing Authority, National Electrification Administration, National Power Corp. and Philippine National Railways.

Other state-run firms that likewise did not receive budgetary support during the month were: the Bases Conversion and Development Authority, Philippine Crop Insurance Corp., Philippine Fisheries Development Authority, Philippine Health Insurance Corp., Philippine Reclamation Authority, Power Sector Assets and Liabilities Management Corp., Subic Bay Metropolitan Authority, Sugar Regulatory Administration and Tourism Infrastructure and Enterprise Zone Authority.