Gov’t firms received P3.33B in first quarter

STATE CORPORATIONS IN the first quarter received from the government a total of P3.33 billion in subsidies—most of which went to those engaged in housing, health and livelihood projects.

Data from the Bureau of the Treasury showed that subsidies to 27 government-owned and -controlled corporations (GOCCs) rose by 49.5 percent from the P2.23 billion disbursed in the same period of 2009.

Still the top recipient was the National Housing Authority with P1.62 billion.

Others were the National Livelihood Development Corp. (NLDC) with P789 million, Philippine Coconut Authority (PCA) with P146 million, National Kidney and Transplant Institute (NKTI) with P130 million and National Livelihood Research Center with P100 million.

In March alone, the government doled out P2.49 billion—almost triple the P846 million reported in the same month last year.

The NHA also received the biggest chunk for the month with P1.32 billion.

Other heavily subsidized entities in March were NLDC with P665 million, PCA with P267 million, NKTI with P76 million and Philippine Heart Center with P75 million.

Earlier this week, state economic managers reported that government spending in the first quarter was over the budget, incurring a deficit of P134.2 billion.

The National Food Authority, the agency that secures the supply and price of rice and other staples, only received P57 million in direct subsidy in the first quarter. But the NFA also got P5.8 billion courtesy of the government’s tax expenditure fund (TEF), considered to be another form of subsidy.

The government allocates a budget for the TEF yearly, which is used to help state-run firms settle duties and taxes with the Bureau of Customs and Bureau of Internal Revenue.

This year, subsidy for the NFA may double again to P8 billion due to the expected tightening of supply arising from storm damage wrought on crops last year. –Ronnel Domingo, Philippine Daily Inquirer