State firms spend annual subsidies in 8 months

MANILA, Philippines - The Philippines’ state-run corporations spent their full year subsidies in just eight months, amid government moves to boost expenditures for farm to market roads and programs benefiting the poor. Subsidies to government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs)—which have been cut by more than half this year—reached P10.09 billion from January to August, Bureau of Treasury data showed. The government earlier earmarked P10 billion for 2008 subsidies, about one-third of the P27.33 billion total subsidies shelled out last year, to encourage state-run firms to be more self-sufficient. From January to August 2007, government subsidies to GOCCs and GFIs reached P14.51 billion. The National Housing Authority received P4.52 billion in the past eight months, followed by the National Food Authority which received P2 billion. Other recipients include the Technology and Livelihood Resource Center (P772 million), Philippine Coconut Authority (P345 million), National Electrification Administration (P345 million), Philippine Heart Center (P323 million), Philippine National Railways (P312 million), and the National Kidney and Transplant Institute (P215 million). The government is deliberately spending more to pump prime the economy, which grew slower at a 4.6 percent pace in the first half of the year from a 7.6 percent growth in the same period last year. Budget Secretary Rolando Andaya Jr. said expenditures grew 13.5 percent in August to boost spending of agencies with infrastructure and social service projects. "We expect this trend of double-digit growth in spending to continue. The challenge now is for revenues to keep up with the growth of spending," Andaya said. The government earlier said it would generate enough revenues to finance the P1.227 billion budget this year but external and internal factors affecting the economy forced the administration to push the balanced budget goal back to 2010. Finance Secretary Margarito B. Teves has programmed the budget shortfall at P75 billion this year and at P40 billion in 2009. The government's budget deficit from January to August stood at P31.7 billion. - GMANews.TV