The National Government will release P21-billion in subsidies to government-owned or controlled corporations (GOCCs) next year, about double the P11.25 billion programmed for 2009.

The budget for next year is almost the same amount released in 2008 and 2007 of P21.14 billion and P21.4 billion, respectively.

For years, the departments of budget and finance have been releasing subsidies to government-owned and -controlled corporations (GOCCs) despite the fiscal deficit position. These subsidies are released to corporations with depleted capitalization.

Under the law, the Department of Budget and Management is mandated to release equity, subsidy and net lending to GOCCs and government financial institutions (GFIs).

Based on Bureau of the Treasury (BTr) data, in the first seven months the government has released P10.5 billion in subsidies to GOCCs and GFIs. This is 31.3 percent higher year-on-year. Including advances or net lending to GOCCs, total disbursement amounted to P16.6 billion.

In July, GOCC and GFI subsidies amounted to P3.521 billion, which was bigger than June’s P1.947 billion.

The government has been attempting to reduce subsidies in favor of equity infusions to help GOCCs restore financial stability. There are four departments directly involved in managing or overseeing GOCCs. These are the DBM, Department of Finance, the Commission on Audit and Commission of Civil Service.

The DoF has been closely monitoring problematic GOCCs including National Food Authority, Home Guaranty Corp., National Electrification Administration, National Development Co., Philippine National Railways and the Land Rail Transportation Authority.