Subsidies to government owned and controlled corporations (GOCCs) totaled P11.96 billion in the first eight months of this year, latest data show.

The full-year GOCC subsidy budget is P13 billion. The end-August government support is higher compared to end-July’s P10.5 billion. For the month of August alone, total GOCC subsidy was P1.46 billion compared to July’s P3.5 billion.

Including cash advances or net lending and equity, total GOCC support as of end-August amounted to P18.72 billion.

Government advances reached P6.41 billion during the eight-month period while equity releases to GOCCs totaled P451 million. For the month of August alone, cash advances amounted to P580 million and P100 million as equity.

The government spent P949.13 billion from January to August, of which interest payments of P203.44 billion was the biggest expense, followed by allotment to local government units of P117.65 billion.

Last year the government exceeded the subsidy program of P10.25 billion by P11.25 billion.

The DoF has been strictly monitoring the finances of GOCCs to minimize impact on public sector finance. Closely monitored GOCCs are National Food Authority, Home Guaranty Corp., National
Electrification Administration, National Development Co., Philippine National Railways and the Land Rail Transportation Authority.

For 2010 the government has raised the budget support for GOCCs to P36 billion from P32 billion
this year. These are in the form of subsidy, equity and net lending or cash advances.

The programmed subsidy for 2010 is P14.17 billion from P13 billion this year and P69.9 billion in 2008. Equity infusion to controlled corporations, in the meantime, have been programmed at P6.76 billion next year from P6.77 billion in 2009 and P4.4 billion in 2008. Total advances, also called net lending, is higher next year to P15 billion compared to P12 billion this year.

Budgetary support for controlled corporations next year will amount to P21 billion from P11.25 billion this year. This will include the P4 billion multi year obligation authority for the BSP, the first of a 10-year P40-billion capitalization program.