Gov’t doubles GOCC subsidies in 2010

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).

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