Board approvals will now be required from state firms applying for subsidies, a Cabinet official said.
“[B]efore we get any request, it should be supported by a board resolution,” Finance Secretary Carlos Dominguez 3rd told reporters in an interview.
Subsidy requests by government-owned and controlled corporations (GOCCs) at present only need to have the signature of their administrator or president.
GOCCs are allowed to ask the Bureau of the Treasury for additional funds for programs, projects, and operational expenses, and Dominguez said the additional requirement wasn’t expected to slow the process.
“They can get [a resolution]passed. They meet every month … Just like in any company, the action of the
executive has to be supported by the board,” the Finance chief said.
GOCC subsidies hit P16.87 billion in July based on latest Treasury data, with Philippine Health Insurance Corp. accounting for nearly the entire amount at P15.11 billion.
The July figure was down 52 percent from last year but year to date, subsidies granted to state-owned firms were up 4.5 percent to P75.09 billion.
GOCC subsidies totalled P103.19 billion last year and the government has programmed an even higher P135.1 billion for 2017.
Next year will see this rise nearly 20 percent to P162.55 billion with state-owned banks such as Land Bank of the Philippines and the Development Bank of the Philippines needing to meet central bank-mandated capitalization requirements.