SUBSIDIES extended by the national government to state-owned corporations ballooned to a record-high P201.52 billion in 2019, with the bulk going to the Philippine Health Insurance Corp. (PhilHealth), according to the Bureau of the Treasury (BTr).
This was also the first time that subsidies granted to government-owned and -controlled corporations (GOCCs) breached the P200-billion mark.
Latest data from BTr showed subsidies to GOCCs last year surged by 47.47 percent from the previous high of P136.65 billion in 2018.
Of the total national government subsidy to GOCCs, half went to other government corporations (P101.37 billion), 34.54 percent to major nonfinancial government corporations (P69.61 billion) and 15.16 percent to government financial institutions (P30.55 billion).
Topping the list of GOCCs with the highest number of subsidy is PhilHealth with P72.70 billion, cornering 36.08 percent of the total.
PhilHealth is mandated to provide health insurance coverage, and ensure accessible and affordable health-care services to Filipinos.
Next to PhilHealth is National Irrigation Administration with P36.64 billion followed by Land Bank of the Philippines (P30.49 billion), National Housing Authority (P13.86 billion), Small Business Corp. (P1.5 billion) and Sugar Regulatory Administration (P1.24 billion).
The National Irrigation Administration is responsible for irrigation development and management in the country; while LandBank, an official depository of government funds, provides credit assistance to small farmers, fisherfolk and agrarian-reform beneficiaries. The state-owned bank is also engaged in land valuation, compensation to owners of private agricultural lands and collection of amortization from farmer-beneficiaries of Comprehensive Agrarian Reform Program.
On the other hand, GOCCs with the least amount of subsidies received are Cagayan Economic Zone Authority with P19 million, Philippine Center for Economic Development (P24 million), Philippine Tax Academy (P36 million), Zamboanga City Special Economic Zone Authority (P48 million) and National Home Mortgage Finance Corp.(P65 million).
Subsidies granted to GOCCs cover operational expenses not supported by revenues, as well as payments for deficits and losses. It is also used to fund national programs, such as health insurance and cash transfer schemes, according to Congressional Policy and Budget Research Department of the House of Representatives.