The government is reviewing its subsidy program to state-controlled corporations and agencies as these continue to exceed the ceiling.

As of end-September, total subsidy to government owned and controlled corporations (GOCCs) and financial institutions (GFIs) surpassed the program by P4 billion. Subsidies amounted to P12.6 billion versus the program of P8.6 billion.

Budget Secretary Rolando Andaya Jr. reiterated that the government’s objective is to limit GOCC and GFI subsidy and to increase equity.

The department only programmed P13 billion as subsidy for 2009. Next year the program was P14.17 billion. Equity infusion to controlled corporations, in the meantime, will amount to P6.76 billion next year from the programmed P6.6 billion in 2009.

The government is also focusing more on disbursing conditional cash transfers (CCTs) as subsidy equivalent for social services and protection. This year, the targeted CCT is P5 billion from less than P300 million in 2008.

Under the law, the finance and budget departments are mandated to release equity, subsidy and net lending to GOCCs and GFIs.

Andaya said earlier that the government is limiting the budget for GOCCs while they assess how to handle or disburse subsidies to under-capitalized agencies.

For the month of September, GOCC subsidy was lower at P596 million compared to August’s P1.46 billion. The highest monthly subsidy release so far was in July when the budget department disbursed P3.52 billion. Including cash advances or net lending and equity, total GOCC support in the first nine months amounted to P23.3 billion from August’s P18.7 billion.

Total advances as of September have reached P10.17 billion, which was less than P2 billion away from its full-year budget of P12 billion. Equity releases to GOCCs totaled P573 million.