Subsidy disbursements to government-owned and controlled corporations (GOCCs) reached only P114.58 billion in the first half of 2026, significantly below the P180.41 billion target.
The Bureau of the Treasury noted that this figure is 36.5% less than the forecast, highlighting a serious challenge in government fiscal management.
Major Subsidy Recipients and Shortfalls
Despite the shortcomings, the amount disbursed marked a significant increase from P52.50 billion in the same period last year, largely due to a substantial P60 billion allocation to the Philippine Health Insurance Corp. (PhilHealth).
The PhilHealth disbursement represents the return of unutilized subsidy funds remitted to the Treasury in 2024, following a Supreme Court ruling.
Bureau of the Treasury
- Food Terminal, Inc. - P10 billion
- National Irrigation Administration - P8.96 billion
- National Food Authority - P8.71 billion
- National Electrification Administration - P3.02 billion
Meanwhile, the Zamboanga City Special Economic Zone Authority received the least assistance, totaling P24 million.
Looking ahead, the government has earmarked P308.78 billion for subsidies to GOCCs for 2026, equating to about 1% of the country's gross domestic product.
To meet this target, disbursements must ramp up in the second half, with P194.20 billion needed to fulfill the annual budget, a 51.3% increase over original forecasts.
This situation raises significant concerns regarding fiscal sustainability and the ability of the government to effectively manage its financial obligations.