Subsidies to GOCCs plunge by 85 percent
STATE subsidies to losing and ailing government-owned and -controlled corporations (GOCCs) declined to P86 million in August, a 85.6 percent drop from the P596-million doleouts in the same month last year, government data showed.
The August subsidies brought the total subsidy rolled out in the first eight months of the year to P9.355 billion, down from the P12.561 billion given out in January to August last year.
Subsidies to GOCCs as of end-July totalled P9.269 billion.
The National Livelihood Development Corp. (NLDC) took most of the August subsidies with P63 million followed by the Philippine Health Insurance Corp. (PHIC) with P8 million.
The Philippine Heart Center (PHC) took third place with P6 million and the National Kidney and Transplant Institute (NKTI) in third spot with P4 million worth of subsidies.
The Southern Philippines Development Authority (SPDA) and Lung Center of the Philippines (LCP) received P3 million and P2 million, respectively.
The reduction in subsidies for August was made possible as government decidedly reined in financial rescue package to perennially losing GOCCs such as the National Food Authority (NFA) while continuing the dole outs to health-related or oriented state firms.
The Finance department now regularly monitors 14 GOCCs, namely: the National Food Authority, Philippine National Oil Co., Philippine Economic Zone Authority, Philippine Ports Authority, Metropolitan Waterworks and Sewerage System, Local Water Utilities Administration, Home Guaranty Corp., National Housing Authority, National Power Corp., National Electrification Administration, Light Rail Transit Authority, National Irrigation Administration, Philippine National Railways and the National Development Co.
The lower subsidies and controlled spending were behind the P1.3 billion revenue surplus achieved in August after generating P107.8 billion in revenues against spending of P106.5 billion.
The August surplus was a reversal of the P22-billion deficit recorded in the same month of 2009.
The P1.3-billion surplus likewise trimmed the deficit in the first eight months to P228.1 billion from the P229.4 billion recorded in the period of January to July. Dino Ng