Government subsidies to GOCCs down 23.4% in January

FILE PHOTO: A worker arranges sacks of locally produced rice in an National Food Authority (NFA) warehouse in Valenzuela City on Monday, November 3, 2025. —GRIG C. MONTEGRANDE

The Marcos administration pared back its subsidies to state-run firms in January, with support for major nonfinancial government corporations slashed by about half from a year ago.

Latest data from the Bureau of the Treasury showed that budgetary support to government-owned and -controlled corporations (GOCCs) had declined by 23.4 percent to P3.4 billion in the first month of the year.

A total of 25 GOCCs received financial support.

The bulk of the budgetary support went to major nonfinancial government corporations, which were allocated P1.6 billion, a 51 percent drop from P3.4 billion in January 2025.

This more than offset the increases seen in subsidies to government financial institutions and other government corporations.

Under government financial institutions, only the Small Business Corp. received support. Its allocation surged 495 percent to P375 million.

Other government corporations saw a nearly 50-percent increase to P1.3 billion.

Among major recipients, the National Food Authority (NFA) remained the largest, receiving P1.13 billion. However, this was 49.7 percent lower than the same period last year.

Affordable rice

The NFA focuses on rice procurement and buffer stocking, supporting the government’s program to roll out cheap rice.

The National Irrigation Administration followed, with subsidies falling 61.8 percent to P414 million.

Other GOCCs receiving more than P100 million included Philippine Crop Insurance Corp. (P240 million), Philippine Heart Center (P202 million), Philippine Rubber Research Institute (P132 million), Philippine Children’s Medical Center (P128 million) and National Kidney and Transplant Institute (P126 million).

For 2026, GOCCs are set to receive P264.82 billion, more than double the P127.43 billion programmed for 2025.

Looking ahead, the Department of Budget and Management said it would flag GOCCs that have remained heavily dependent on subsidies for at least 10 consecutive years, which may be subjected to mandatory institutional review.