Subsidies to gov’t-owned firms rise by 200% in Q1

MANILA, Philippines – The national government’s subsidies to government-owned and controlled corporations (GOCCs) jumped by 200% in the first quarter of 2015, with the majority used to support the National Electrification Administration (NEA).

The subsidies released to government firms in January to March totaled to P3.69 billion ($81.8 million), up from the P1.23 billion ($27.2 million) registered a year ago, based on the latest Cash Operations Report.

The report showed that NEA received the highest amount or P731 million ($16.2 million) during the period, while the second highest amount went to the Philippine Children’s Medical Center amounting to P607 million ($13.4 million).

The following round up the GOCCs which received the most support: 

• the National Irrigation Administration with P406 million ($9 million);
• the Philippine Postal Corporation with P301 million ($6.6 million); and
• the National Home Mortgage Finance Corporation with P250 million ($5.5 million)

The bulk of the subsidies in the first quarter was released in March alone, with P2.862 billion ($63.4 million).

GOCC remittances

The Department of Budget Management earlier reported that more than 40% of the dividends remitted by GOCCs to the national government will be used to fund the various housing initiatives under the Yolanda rehabilitation program.

Of the P36.9 billion ($818.3 million) remitted to the national government, P15.9 billion ($352.6 million) will be spent for the program.

Budget secretary Florencio Abad also said that part of the dividends could be used to fund the MRT-3 buyout.

The GOCC remittances exceeded the P5.5 billion ($121.9 million) target, and is P4.6 billion ($102 million) higher than remittances recorded in the previous year. 

Of the GOCCs that remitted funds to the National Government, the Philippine Amusement and Gaming Corporation led the way with P10.1 billion ($224 million) returned to the Treasury. 

Land Bank of the Philippines and the Bases Conversion Development Authority also contributed significantly to the surplus, with remittances of P6.3 billion ($139.7 million) and P3.2 billion ($70.9 million), respectively while The Development Bank of the Philippines remitted P3.1 billion ($68.7 million). – Rappler.com