Gov't slashes GOCC subsidies by 15%

Budgetary support down to P139 B in 2024

- By LOUISE MAUREEN SIMEON

The government grants subsidies to government-owned and controlled corporations (GOCCs) as a way to cover operational expenses that are not supported by their own revenues.

The Marcos administration began cutting down subsidies in 2023 as part of fiscal consolidation efforts aimed at reducing both the budget deficit and overall debt.

Support for major non-financial government corporations reached P95.41 billion in 2024, up by 28 percent from P74.7 billion in 2023. It cornered 69 percent of the total subsidies.

About 27 percent of the subsidies at almost P38 billion went to other government corporations. But the amount was 57 percent below the 2023 level of P88.2 billion.

The remaining P5.58 billion went to government financial institutions, recording a nearly nine-fold increase in subsidies.