Subsidies to state firms up 7%

Subsidies received by state firms from the government grew by 6.9% in the first half compared with the same period last year, data from the Bureau of the Treasury showed. Subsidies amounted to P7.466 billion, up from P6.981 billion. Data showed that bulk of the subsidies went to the National Food Authority, which is responsible for importing rice to be sold to the poor at lower-than-market prices. It received P2.85 billion. The National Housing Authority, which is in charge of providing social housing, was second highest recipient with P1.87 billion. Third largest recipient was the National Telecommunications Commission at P1.025 billion; followed by the National Livelihood Development Corp. (NLDC), P980 million; and Philippine Coconut Authority, P244 million. Other recipients were the Philippine Rice Research Institute, P174 million; National Kidney and Transplant Institute (NKTI), P169 million; Philippine Heart Center (PHC), P136 million; Philippine Children’s Medical Center, P109 million; and National Labor Relations Commission, P100 million. For June alone, subsidies declined by 90.6% to P183 million from last year’s P1.947 billion. Top recipients for the month were the Bases and Conversion Development Authority, P92 million; NLDC, P65 million; NKTI; P8 million, PHC, P6 million; and National Dairy Authority, P4 million. Subsidies to state firms are part of the government’s expenditure. As of end-June, state expenditures amounted to P788.8 billion, 12.8% higher than last year’s P699.1 billion. -- Louella D. Desiderio, BusinessWorld