Filipino taxpayers extended P5 billion worth of subsidies to companies engaged in electricity, gas, steam and air-conditioning supply, according to the Philippine Statistics Authority (PSA).
Subsidies are special grants from the government in the form of financial assistance, tax exemption or tax privilege to help develop an industry.
Based on the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI), the PSA said businesses based in Eastern Visayas received the highest subsidy estimated at P891.4 million, or 17.8 percent of the total.
“This was followed by Central Visayas and Caraga with subsidies amounting to P817.5 million [16.4 percent] and P788.2 million [15.8 percent], respectively,” the PSA said.
Data showed this was lower than the subsidies received by firms engaged in electricity, gas, steam and air-conditioning supply in 2015.
PSA data showed the sector received subsidies worth P11 billion in 2015.
Meanwhile, the sector’s total value of output was at P735.5 billion in 2016, a contraction of 2.11 percent from the P751.4 billion posted in 2015.
Among the regions, Calabarzon generated the highest value of output with P177.2 billion representing 23.5 percent of the total. This was followed by the National Capital Region with P166.9 billion, or 22.1 percent, and Central Luzon with P109.4 billion, or 14.5 percent.
PSA data showed that the Autonomous Region in Muslim Mindanao (ARMM) reported the least value of output at P1.6 billion, or 0.2 percent of the total.
Data showed that there were 226 establishments with total employment of 20 and over under electricity, gas, steam and air-conditioning supply sector.
Among regions, Central Luzon was the lead with 31 establishments, or 13.7 percent of the total. This was followed by Calabarzon and Central Visayas with 23 (10.2 percent) and 20 (8.8 percent) establishments, respectively.
These top 3 regions accounted for nearly one-third (32.7 percent) of the total establishments for the sector. On the other hand, ARMM recorded the least count with only five establishments (2.2 percent).