Gov't Cuts Subsidies to P15 Billion in April

The government slashed its budgetary support to state-run firms by nearly half to P15 billion in April, with the bulk of the subsidies meant to support the energy sector.

- By Louise Maureen Simeon

Data from the Bureau of the Treasury showed that subsidies to government-owned and controlled corporations (GOCCs) went down by 48 percent to P14.54 billion in April from P27.72 billion in the same period last year.

During the month, budgetary support for major non-financial government corporations plummeted by 70 percent to P4.82 billion.

Likewise, subsidies for other government corporations declined by 11 percent to P9.41 billion from P10.52 billion a year ago.

The government grants subsidies to GOCCs as a way to cover operational expenses that are not supported by their own revenues.