MANILA, Philippines – Subsidies disbursed by the National Government to government-owned and controlled corporations (GOCCs) and state-owned agencies hit P6.981 billion from January to June, 90 percent higher than the P3.67 billion released in the same period last year, latest data from the Department of Finance (DOF) showed.
The subsidies nearly doubled as the government extended more funds to state agencies as part of its pump-priming efforts, Finance Undersecretary Gil Beltran said.
“It’s for infrastructure spending,” Beltran said.
During the six-month period, the amount of subsidies released in June was the highest at P1.947 billion.
Subsidies in January amounted to P1.147 billion, P233 million in February, P846 million in March, P1.866 billion in April and P942 million in May.
Bulk of the subsidies from January to June went to the National Housing Authority, which received P2.376 billion. The NHA is mandated to develop and implement a comprehensive and integrated housing program for the poor.
The National Home Mortgage Finance Corp., the government’s major secondary market for home mortgages, received P900 million while the National Irrigation Administration, which implements irrigation projects necessary to boost agriculture, received P892 million.
The Philippine National Railways, which is mandated to provide railway services to promote economic development, received P349 million while the Philippine Coconut Authority, which develops the country’s coconut industry, received P230 million.
Other top recipients during the six-month period are the Cultural Center of the Philippines (P128 million), Cagayan Economic Zone Authority (P103 million), the National Kidney and Transplant Institute (P143 million), Philippine Children’s Medical Center (P126 million), Philippine Health Insurance Corp. (P67 million) and the Philippine Institute for Development Studies (P57 million).
The Department of Finance is conntinuously reviewing the performance of GOCCs to determine which agencies may be recommended to Congress for abolition.
The Asian Development Bank (ADB) has pointed out that the Philippine government has not complied with its commitment to reduce bleeding GOCCs, noting that some of these are suffering from weak institutional and regulatory frameworks.
The Manila-based lender also called on the government to shutter some non-performing corporations or to privatize them. Finance officials are reviewing the performance of the GOCCs to determine if they should continue their operations or be deactivated.
Finance Secretary Margarito Teves has said he would not hesitate to ask Congress to abolish state-run firms that pose burden to taxpayers and to the National Government. –Iris C. Gonzales, Philippine Star
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