Government cuts GOCC subsidies to P107 billion

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April 5, 2026 | 12:00am

MANILA, Philippines — The government disbursed lower budgetary support to state-run firms, with subsidies falling to P106.92 billion last year, the bulk of which went to irrigation projects and rice security.

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) plunged by 22.9 percent from P138.76 billion in 2024.

However, in December alone, budgetary support rose by 18.8 percent to P11.08 billion.

Last year, budgetary support for major non-financial government corporations plunged by 29.4 percent to P67.33 billion. It covered 63 percent of the entire subsidies.

On the other hand, subsidies for other government corporations reached P39.09 billion, up by nearly four percent. The amount cornered 36.6 percent of the aggregate.

The rest went to government financial institutions, which reached P509 million, reflecting a decline of 90.9 percent from P5.58 billion the previous year.

The government grants subsidies to GOCCs to cover operational expenses not supported by their own revenues.

In 2025, 44.2 percent of total subsidies went to the National Irrigation Administration, amounting to P47.24 billion.

However, this was a 34-percent decrease from the P71.21 billion it received in the previous year.

The National Food Authority secured the second-highest subsidy at P14.4 billion, 28 percent lower than in 2024.

This was followed by the Power Sector Assets and Liabilities Management at P8 billion in 2025.

Other top subsidy beneficiaries include the Philippine Crop Insurance Corp., Philippine Reclamation Authority, Philippine Fisheries Development Authority, Philippine Heart Center, Philippine Rubber Research Institute and the Bases Conversion and Development Authority.

The smallest subsidy was given to the Land Bank of the Philippines with P7 million.

The Tourism Infrastructure and Enterprise Zone Authority received P22 million, the Philippine Health Insurance Corp. (P27 million), the Zamboanga City Special Economic Zone Authority (P47 million), the Philippine Center for Economic Development (P59 million) and the Philippine Tax Academy (P60 million).

In 2025, government expenditures rose by 1.8 percent to P6.03 trillion from P5.93 trillion in 2024.