The Philippine government's subsidies to state-owned firms rose by 19% in the first quarter of the year, reaching P26.8 billion, according to the latest data from the Bureau of the Treasury.
The increase reflects higher budgetary support for government-owned and -controlled corporations (GOCCs), which include major entities such as the Philippine Health Insurance Corporation (PhilHealth), the National Housing Authority, and the Light Rail Transit Authority.
Finance officials attributed the rise to expanded social programs and infrastructure projects. PhilHealth received the largest share, accounting for nearly half of the total subsidies, to cover premium subsidies for indigent members.
Other beneficiaries included the National Irrigation Administration and the Philippine Ports Authority, which are undertaking capital-intensive projects. The Treasury noted that the subsidy disbursements remained within the programmed budget for the period.
Economic analysts said the higher spending aligns with the government’s goal to sustain economic growth while strengthening social safety nets. However, they cautioned that persistent subsidy growth could pressure fiscal space if revenues do not keep pace.