State subsidies to GOCCs decline at end-November

State subsidies to non-financial government-owned and controlled corporations (GOCCs) slightly dipped at end-November. Data from the Bureau of Treasury showed that for the first 11 months, the national government gave out a total of P16.323 billion in financial support to state-owned firms, or three percent lower than the P16.84 billion last year.

In November alone, the government disbursed P367 million, or 84 percent lower than last year’s P2.32 billion.

Among the top recipients of financial aid for the first 11 months was the National Food Authority (NFA) at P7.685 billion, although the agency did not receive any assistance in November.

It was followed by the National Housing Authority (NHA) at P3.5 billion even as its subsidy fell to P59 million last month. Trailing the NHA was the National Livelihood and Development Corp. with P1.262 billion as it enjoyed P160 million in aid last month.

The National Telecommunication Commission received P1.025 billion so far this year, but has yet to receive a peso since April this year.

Philippine Coconut Authority received P439 million at end-November.

In the first 11 months of the year, the government incurred a budget shortfall of P269.8 billion, or lower than its P300.2-billion deficit cap for the period.

The full-year budget deficit ceiling stands at P325 billion, or 3.9 percent of the country’s economic output.
Eleven-month disbursements were kept 6.3 percent below the P1.4669-trillion programmed for the period.

The country’s economic managers had said that they are reviewing the mandates of these state-run firms to streamline their operations and allow the government to cut back on subsidies. The government is studying which of these GOCCs to abolish, especially if their functions are already effectively addressed by the private sector. –KATRINA MENNEN A. VALDEZ REPORTER, Manila Times