State-owned and controlled corporations received P8.24 billion worth of subsidies from the national government to sustain their operations in the fist quarter, data from the Bureau of Treasury show.
Subsidies extended by the government to GOCCs swelled from P3.696 billion it spent in the same quarter in 2015.
Bulk of the amount went to the National Irrigation Administration with P2.06 billion, followed by Subic Bay Metropolitan Authority with P1.467 billion; National Electrification Administration, P1.011 billion; and Philippine Children’s Medical Center, P592 million.
Data showed that in March alone, subsidies jumped 35.9 percent to P3.889 billion from P2.862 billion recorded in the same month in 2015.
The biggest recipient of government subsidies in March was NIA with P1.658 billion followed by NEA with P1.011 billion, Bases Conversion Development Authority with P401 million and Social Housing Finance Corp. with P243 million.
Subsidies given by the government to GOCCs cover the agencies’ operational expenses that are not supported by corporate revenues which may be spent on specific programs and projects.
The government plans to increase support for GOCCs in 2016, as the Budget of Expenditures and Sources of Financing document for the fiscal year 2016 showed the proposed allotment for GOCCs would increase to P127.1 billion from P75 billion in 2015 and P80.3 billion in 2014.
Of the total proposed amount, P96.1 billion would be in the form of subsidies, P31 billion equity and P26.5 million net lending.
Subsidies to GOCCs declined 3 percent last year to P78.01 billion from P80.44 billion in 2014, the biggest annual amount thus far. Philippine Health Insurance Corp. was the biggest recipient of government subsidy last year, with P34.87 billion.