Philhealth, NEA, NFA top recipients of state subsidies
MANILA, Philippines - The national government extended P27 billion subsidies to state-owned firms or agencies in January-to-June, data from the Department of Budget and Management (DBM) showed.
For June alone, government spent P17.43 billion, adding to the January-to-May figure of P10 billion.
The biggest recipient among government-owned and -controlled corporations (GOCCs) during the first 6 months of 2013 were the Philippine Health Insurance Corp. (Philhealth), the National Electrification Administration (NEA) and the National Food Authority (NFA).
Philhealth cornered almost P12 billion in subsidies, consistent with the Aquino administration’s promise to increase funding for Philhealth, Budget Secretary Florencio Abad said.
Abad stressed that the government provided benefits to 10 million indigent families under the Philhealth program.
NEA and the NFA received P2.5 billion and P2 billion, respectively.
Booked as expenses in the government’s financial statement, subsidies are extended to state agencies to support various projects, initiatives or other operational needs that need funding.
The DBM has been trying to implement prudent spending in the release of subsidies to state agencies while at the same time boosting expenditures in more critical areas.
In 2012, the government extended P42.146 billion in subsidies to state agencies and GOCCs last year, lower than the P53.705 billion disbursed in 2011.
This 2013, the government has programmed P42 billion in subsidies for GOCCs. - Rappler.com