SUBSIDIES extended to state-run firms by the Marcos administration during its first month in office surged nearly fivefold to P30.3 billion, with the bulk of the amount going to the Philippine Health Insurance Corporation (PhilHealth).
Latest data from the Bureau of the Treasury showed total subsidies released to government-owned and -controlled corporations (GOCCs) during the month spiked by 398.8 percent from only P6.08 billion in July last year.
The state health insurer PhilHealth topped the list of subsidy recipients during the month as it cornered P22.46 billion.
Trailing PhilHealth on the top five list are the National Irrigation Administration or NIA (P5.87 billion), National Power Corporation (P400 million), Development Academy of the Philippines (P214 million), and Light Rail Transit Authority (P162 million).
The national government provides subsidies to state-run firms to fund operations not covered by corporate revenues or to finance specific programs or projects.
PhilHealth, which has been the top recipient of government subsidies since 2014, is set to receive its P79.99-billion subsidy under this year’s P5.024-trillion 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.
Since January 2022, cumulative subsidies given by the national government to GOCCs reached P75 billion, falling by 20.5 percent from P94.36 billion in the same period last year.
Leading the pack is NIA which received a total of P24.2 billion from January to July this year. It is followed by PhilHealth (P22.46 billion), National Housing Authority (P8.94 billion), National Food Authority (P3.38 billion), and Bases Conversion and Development Authority (P2.17 billion).
Last year, subsidies to GOCCs settled at P184.77 billion, falling to its lowest level since 2018’s P136.65 billion. This was also a 19-percent drop from a record-high P229.02 billion in 2020.
The Department of Finance under the previous administration 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.