MANILA, Philippines—State-run corporations received a total of P80.44 billion in subsidies from the government last year, the highest annual amount to date and up 21.3 percent from P66.33 billion in 2013, latest documents from the Bureau of the Treasury showed.
Subsidies to government-owned and -controlled corporations (GOCCs) in 2014 exceeded those given during the previous year even as the amount distributed in December worth P14.12 billion was just more than half of the P27.22 billion distributed during the last month of 2013.
Subsidies from the national government cover operational expenses not being supported by corporate revenues and may as well be spent on specific projects and programs of GOCCs. Besides the grant of subsidies, the national government also extends financial support to GOCCs through equity as well as net lending.
Last year, the recipient of the biggest chunk of government subsidies was Philippine Health Insurance Corp. (PhilHealth), which got P35.33 billion or 43.9 percent of the total. The tax-exempt GOCC is being allocated funding in a bid to provide health insurance coverage as well as accessible and affordable healthcare services to all Filipinos. According to its website, PhilHealth covered 81.5 million beneficiaries (members and their dependents) as of mid-2014.
The other state-run corporations that received subsidies last year were Aurora Pacific Economic Zone and Freeport Authority (P48 million), Cultural Center of the Philippines (P245 million), Cottage Industry Technology Center (P22 million), Center for International Trade Expositions and Missions (P186 million), Development Academy of the Philippines (P138 million), Local Waterworks and Utilities Administration (P265 million) and Lung Center of the Philippines (P203 million).
Also infused with subsidies were National Dairy Authority (P299 million), National Electrification Administration (P5.64 billion), National Food Authority (P4.25 billion), National Housing Authority or NHA (P19.06 billion), National Home Mortgage and Finance Corp. (P500 million), National Irrigation Administration (P1.07 billion), National Kidney and Transplant Institute (P228 million) and National Power Corp. (P960 million).
The following GOCCs likewise were granted subsidies in 2014: Philippine Coconut Authority (P1.97 billion), Philippine Center for Economic Development (P21 million), People’s Credit and Finance Corp. (P900 million), Philippine Crop Insurance Corp. (P1.16 billion), Philippine Children’s Medical Center (P365 million), Philippine Deposit Insurance Corp. (P2.79 billion), Philippine Heart Center (P280 million), Philippine Institute for Development Studies (P348 million), Philippine Institute of Traditional and Alternative Health Care (P49 million), Philippine National Railways (P138 million), Philippine Postal Corp. (P968 million) and Philippine Rice Research Institute (P547 million).//
Subsidies to state firms hit record P80.44B in 2014
