GOCC subsidies fell 30% in February
Budgetary support to state-run firms plunged anew in February as the government scaled back infrastructure-related subsidies, data from the Bureau of the Treasury (BTr) showed.
According to the BTr’s cash operations report, subsidies to government-owned and -controlled corporations (GOCCs) fell by nearly 30 percent year on year to P5.334 billion in the second month of the year.
A key driver of the decline was the absence of disbursements to the Bases Conversion and Development Authority (BCDA), which undertakes the development of former military bases into economic hubs and infrastructure projects.
In February 2025, BCDA was the second-largest recipient of subsidies at P1.9 billion.
Notably, BCDA’s 2026 revised corporate operating budget showed that projects funded under the 2026 General Appropriations Act amount to P1.1 billion, down from P2.6 billion in 2025.
The agency has also recently said that it was banking on the support of the US government and private sector partners to fund its projects, reducing its reliance on the national budget.
The decline in subsidies comes as the Department of Budget and Management (DBM) moves to tighten spending amid limited fiscal space. Already, the DBM said it would flag GOCCs that have remained heavily dependent on state support for at least a decade.
Still, some agriculture-related agencies saw increased support amid the retained food security emergency status and ahead of the El Niño season.
The National Food Authority received P1.478 billion in February, while the Philippine Crop Insurance Corp. got P351 million. Both agencies did not receive subsidies in the same month last year.
The Philippine Coconut Authority also received P105 million, among the highest allocations for the month.
Meanwhile, subsidies to the National Irrigation Administration declined to P2.451 billion from P3.155 billion a year ago, although it remained one of the largest recipients.
Health institutions also accounted for a significant share of subsidies, including the Philippine Heart Center with P202 million, the Philippine Children’s Medical Center with P128 million and the National Kidney and Transplant Institute with P126 million. The support is consistent with the record-high P448-billion allocation for the Department of Health in 2026.
For this year, subsidies for GOCCs are programmed at P264.82 billion, more than double the P127.43 billion allocated in 2025.
