WAAAAH! Finally a business story...
Wow! I'm a business journalist now. Hehehe
=)
Thursday, August 30, 2007
Higher subsidy set for GOCCs next year
By Zandro Amiel N. Ochona Researcher
NEXT year’s budgetary support to government owned and controlled corporations (GOCCs) will increase by more than half, according to the Department of Budget and Management (DBM).
In a statement, the DBM said GOCCs would receive P24.7-billion worth of subsidies next year from this year’s P15.94 billion.
Budget Secretary Rolando Andaya Jr., said the 55-percent increase is due to the P7.3-billion proposed allocation for three housing agencies for resettling squatters along railroad tracks and build low-cost dwellings.
The National Housing Authority will receive a P5-billion subsidy while the Home Guaranty Corp. will receive a P1.4-billion equity infusion. Another P900 million is allotted for the securitization and community mortgage projects of the National Home Mortgage Finance Corp.
More half of the budgetary support for the state corporate sector, or P12.66 billion will be in the form of subsidy or equity support for 27 chartered GOCCs.
Andaya said that corporations that deliver social services such as the Quezon City-based specialty hospitals will corner 65 percent of the P 12.7 billion subsidy.
The remaining P12.04 billion represent advances or net lending by the national treasury to GOCCs. Net lending refers to advances by the national government for the servicing of state-guaranteed debt during the year, net repayments on such advances.
Andaya said the remaining 35 percent of the budgetary increase will be used for public firms that render economic services such as agricultural agencies like the National Food Authority (NFA).
The Heart, Lung, Kidney and Children medical centers are set to receive a combined P763.5 million in budgetary support to aid indigent patients next year.
In the agriculture cluster, the NFA, with a programmed allocation of P2 billion, leads agencies that will have access to P2.950-billion worth of subsidies.
from:
http://www.manilatimes.net/national/2007/aug/30/yehey/business/20070830bus4.html