SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) more than doubled to P114.576 billion in the first half of the year compared to a year earlier.
Financial support to state-run corporations rose by 118.24 percent to P114.576 billion from January to June this year from P52.498 billion in the same period in 2025, according to the latest data from the Bureau of the Treasury.
The national government regularly grants subsidies to GOCCs to cover operational expenses not supported by revenues, as well as payments for deficits and losses.
Of the total subsidies in the six-month period, P1 billion went to government financial institutions, P22.727 billion to major non-financial government corporations and P90.849 billion to other government corporations.
The Philippine Health Insurance Corp. (PhilHealth) received the largest subsidy at P60 billion, following the return of ‘excess’ funds it had remitted to the Treasury to finance unprogrammed appropriations under the 2024 national budget.
It was followed by Food Terminal Inc. with P10 billion, the National Irrigation Administration with P8.959 billion, the National Food Authority with P8.708 billion and the National Electrification Administration with P3.022 billion.
In June alone, subsidies to GOCCs surged by 122.33 percent to P16.562 billion from P7.449 billion in the same month last year.
FTI obtained the highest subsidy during the month at P10 billion, trailed by the Philippine Postal Corp. with P1.025 billion and the NFA and the Bases Conversion and Development Authority with P758 million each.
For the full year, GOCC subsidies are programmed at P159.560 billion, 9.22 percent lower than the P175.777 billion allocated in 2025, as state-run corporations become more self-sufficient.
In fact, the government expects to collect P147.15 billion in dividends from 50 GOCCs this year, 28.34 percent higher than the P114.65 billion remitted in 2025.
Actual dividend collection reached P140 billion as of July, of which P62.39 billion was contributed by the Bangko Sentral ng Pilipinas.
Under Republic Act No. 7656, or the Dividend Law, all GOCCs, with some exemptions, are required to declare and remit at least 50 percent of their annual net earnings as dividends to the national government.
The Department of Finance has requested GOCCs to increase their remittances to 75 percent to maximize non-tax revenues.
For 2027, GOCC subsidies are projected to rise to P191.8 billion, up by 20.20 percent from this year’s allocation.