SUBSIDIES TO STATE FIRMS SHOOT UP TO 74%
MANILA, JULY 5, 2011 (MANILA STANDARD) GOVERNMENT subsidies to state corporations rose 74 percent to P12.76 billion in the five months to May as it shored up their finances to allow them to continue operating.
The total compares with the P7.28 billion that those companies received in the same period last year, according to the latest data from the Treasury Bureau.
The subsidies to state companies nearly doubled in May alone, to P5.49 billion from P2.84 billion, with the bulk of the money—P5 billion—going to Philippine Health Insurance Corp. That amount brought the total aid to Philhealth to P5.069 billion.
The National Livelihood Development Center received the second-highest subsidy of P205 million in May, bringing the total assistance to it to P1.086 billion so far this year.
The other top recipients in the five months to May were the National Food Authority (P2.5 billion), National Power Corp. (P2 billion), National Livelihood Development Corp. (P1.08 billion), and the National Housing Authority (P574 million)
The government has pegged the budgetary support to state corporations at P21 billion this year, including P4-billion for the Bangko Sentral.
The government earmarked P14.17 billion in subsidies to state-owned and -controlled corporations last year, but it actually released P21 billion to them.
The Finance department has been attempting to reduce the subsidies to state corporations in favor of equity infusions to help them stabilize their finances. Elaine Ramos-Alanguilan
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Chief News Editor: Sol Jose Vanzi
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