The government’s administration’s expenses in subsidizing the operations of state-owned, controlled corporations, and financial institutions in 2012 exceeded the target, but lower compared with the previous year.

Data from the Bureau of Treasury showed that the national government spent P42.15 billion in subsidies in January to December 2012, higher by 33 percent compared with P31.76 billion program for the year.

However, total subsidies last year dropped by 21.5 percent compared with P53.7 billion spent in 2011.

In December alone, the government’s subsidies reached P15.96 billion, higher by 89 percent compared with P8.5 billion on the same month a year before.

In 2012, the biggest recipient of government subsidies was the Philippine Health Insurance Corporation or commonly known as PhilHealth with P14.07 billion. In December alone, the state health care provider received P11.9 billion in financial aid.

State-owned firms that enjoyed hefty financial assistance from the national government in 2012 were cash-strapped National Food Authority with P7.66 billion, the National Electrification Administration with P4.95 billion and the National Irrigation Administration with P2.81 billion.

Other recipients were the National Housing Authority with P2.4 billion, Metropolitan Waterworks and Sewerage System with P1.87 billion, Government Service Insurance System with P1.5 billion, and the Philippine Coconut Authority with P1.18 billion.

For this year, the national government has allocated P42.79 billion for its subsidies for state-owned companies.

In 2011, President Aquino signed into law the GOCC Governance Act of 2011, which provides for the rationalization of salaries and benefits of officials and employees of government companies.

The President said bloated salaries of top GOCC officials lead to the unwieldiness of such institutions.

The measure will create a Governance Commission for GOCCs (GCG) which shall be composed of five members — chairman with the rank of Cabinet secretary and two members with the rank of undersecretary to be appointed by the President — and the Budget and Finance secretaries as ex-officio members.

The commission shall develop a new position and classification system that will apply to all officers and employees of GOCCs, whether covered by the Salary Standardization Law or exempt from it.