Subsidies down 38%

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Subsidies to government-owned and -controlled corporations in the first four months of the year posted a 38 percent decline versus its year ago level, data released by the Bureau of the Treasury (BTr) showed.

According to data posted on the BTr website, subsidies from January to April totaled to P35.26 billion, down from the P56.86 billion released in the same period last year.

The lion’s share of the subsidies released to state-run firms, amounting to P10.89 billion, went to the National Irrigation Administration (NIA), which is responsible for irrigation development and management.

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The Philippine Health Insurance Corp. (PhilHealth) is the second biggest recipient for the period with P8.95 billion.

Other billionaire recipients are the National Food Authority (NFA) and the National Housing Authority (NHA), with P7 billion and P3.225 billion, respectively.

In April alone, subsidies amounted to P23.84 billion, 30.74 percent down from the P34.42 billion posted in the same time in 2020.

PhilHealth is the top recipient for the month with P8.95 billion.

Other major recipients are the NFA with P7 billion, NIA with P3.394 billion and NHA with P3.23 billion.

The BTr earlier reported that the national government’s budget deficit shrank to P44.4 billion in April as revenues posted a double-digit growth while expenditures dropped from the year ago level.

According to the BTr, the national government’s fiscal deficit in April was 83.78 percent lower versus the P273.9 billion posted a year ago.

Revenues recorded a 55.46 percent hike while expenditures dropped by 27.14 percent.

To recall, the government’s collection of taxes in the same month last year posted a steep decline attributed to the implementation of strict quarantine measures which limited mobility.

The deadline for the filing and payment of income and other taxes due for April 2020 was also extended in light of the implementation of the enhanced community quarantine (ECQ), whereas the Bureau of Internal Revenue stuck to the April 15 deadline for this year, the BTr said.

Meanwhile, the government also substantially spent for its coronavirus pandemic response at the height of the imposition of ECQ last year.

The cumulative budget deficit as of end-April, on the other hand, went up by 1.63 percent to P365.9 billion from last year’s budget gap of P360 billion for the period, the BTr said. – Angela Celis

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