THE national government extended lower subsidies to state-run corporations in the first half of this year compared to a year ago.
Latest data from the Bureau of the Treasury showed subsidies to government-owned and -controlled corporations (GOCCs) from January to June this year plunged by 49.4 percent to P44.69 billion from P88.28 billion recorded in the same period in 2021.
The national government provides subsidies to state-run firms to fund operations not covered by corporate revenues or to finance specific programs or projects.
Topping the list of government corporations that received the biggest amount of subsidies within the six-month period is the National Irrigation Administration (NIA), which got P18.35 billion.
This is followed by the National Housing Authority or NHA (P8.94 billion), National Food Authority (3.24 billion), Bases Conversion and Development Authority (P2.17 billion), and the Philippine Fisheries Development Authority or PFDA (P1.69 billion).
Interestingly, the state-run Philippine Health Insurance Corporation (PhilHealth), which has been the top recipient of government subsidies since 2014, has yet to get its share of subsidies from the government since the start of the year even though the country is still in the middle of the Covid-19 pandemic.
For this year, PhilHealth is set to receive its P79.99-billion subsidy under the P5.024-trillion 2022 national budget. Amid the Covid-19 pandemic, PhilHealth had the biggest share of subsidies last year, with P80.98 billion or 43.8 percent of the total amount disbursed.
For June alone, government subsidies to GOCCs spiked by 47.8 percent to P12.33 billion from P8.34 billion in the same month last year.
Leading the top subsidy recipients for the month is NHA with P5.75 billion, followed by the NIA (P3.08 billion), National Electrification Administration (P877 million), PFDA (P863 million), and Civil Aviation Authority of the Philippines (P367 million).
Amid pandemic last year, GOCC subsidies dropped to P184.77 billion, the lowest level since 2018’s P136.65 billion.
The Department of Finance earlier reported that cash dividends remitted by GOCCs since President Duterte took office in mid-2016 hit a record high of P374.54 billion, the highest ever amount collected under any administration.
This was also more than double the amount collected under the administration of the late President Benigno Aquino III at P164.81 billion; and is also more than six times the equivalent of the P60.82 billion dividend remittances under the Arroyo administration.
Under Republic Act 7656 or the Dividends Law, GOCCs are required to declare and remit at least 50 percent of their annual net earnings as cash, stock, or property dividends to the national government.