Filipino taxpayers extended P6 billion worth of subsidies to the finance and insurance sector in 2014, according to the Philippine Statistics Authority (PSA).
On Thursday preliminary estimates released by the PSA showed that subsidies received by the sector was lower than the P6.4 billion it received in 2013.
“Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry,” the PSA said.
PSA data showed three industry groups received subsidies from the government—auxiliary insurance, pension fund and fund management-related firms; insurance; and other financial services.
Subsidies extended to the combined activities auxiliary to insurance and pension funding and fund management reached P4.1 billion in 2014.
This was followed by insurance which received subsidies worth P1.3 billion and other financial service activities, except insurance and pension-funding activities, granted a share of P525.7 million in 2014.
In terms of regions, only four of the regions reported subsidies received from the government—the National Capital Region (NCR), Caraga, Autonomous Region in Muslim Mindanao (ARMM) and Northern Mindanao.
NCR received the highest subsidy of P6 billion. Ranked a far second was Caraga, combined with ARMM with P4.8 million.
Northern Mindanao came in third slot with subsidies of P500,000 of the total subsidies received by the sector.
Data showed there were a total of 1,059 establishments, with total employment of 20 and over in the formal sector of the economy were engaged in financial and insurance activities.
Other financial service activities, except insurance and pension funding comprised 465, or 43.9 percent of the total number of establishments.
This was followed by establishments engaged in monetary intermediation with 300, or 28.3 percent. Ranked third were establishments engaged in insurance activities with 100, or 9.4 percent.
At the regional level Metro Manila had the most number of establishments with 46.9 percent, or 497 firms.
Calabarzon and Central Luzon placed far second and third with 9.9 percent and 8.2 percent, respectively. Cordillera Administrative Region had the least with only 10 establishments.