GOCC subsidies up by 70% as govt boosts sectors By Reine Juvierre S. Alberto
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UBSIDIES extended to staterun corporations surged by 70 percent in March, as the national government ramped up budgetary support for key sectors amid the energy crisis. Latest data from the Bureau of the Treasury (BTr) showed that subsidies to government-owned and -controlled corporations (GOCCs) climbed to P18.152 billion in March from P10.630 billion in the same month last year. The National Irrigation Administration (NIA) received the largest share of subsidies during the
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month at P4.061 billion, money to fund various irrigation projects. The National Electrification Administration (NEA) trailed with P3.022 billion to support the implementation of its Rural Electrification Program, while the Power Sector Assets and Liabilities Management Corp. (PSALM) received P2.5 billion for the implementation of the Murang Kuryente Act. The Bases Conversion and Development Authority (BCDA) was also granted P2.084 billion for infrastructure development projects. Moreover, the Philippine Fisheries Development Authority received P1.763 billion for locally
funded projects aimed at supporting the fisheries sector, while the National Food Authority (NFA) was allotted P1.260 billion for its Rice Buffer Stocking Program. From January to March, total subsidies to GOCCs jumped by 18.83 percent to P26.843 billion from P22.589 billion in the same period last year. Of the total, P14.697 billion went to major non-financial government corporations, while other government corporations and government financial institutions received P11.771 billion and P375 million, respectively. NIA remained the top subsidy
recipient in the first quarter, receiving P6.926 billion, followed by the NFA with P3.871 billion and the NEA with P3.022 billion. The national government extends subsidies to state-run firms to support operations not covered by corporate revenues or to finance specific programs or projects. This year, the government has allocated higher subsidies amounting to P149.654 billion for GOCCs. Of the amount, the Philippine Health Insurance Corp. will receive the largest subsidy at P53.262 billion to fund the annual insurance premiums of indigent beneficiaries.
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FLOOD MESS SHADOW: Q1 INFRASPEND DIPS 43.5% www.businessmirror.com.ph
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By Reine Juvierre S. Alberto @reine_alberto
OWER infrastructure spending continued to drag overall government spending in the first quarter, with capital outlay plunging by nearly half amid stricter project validations due to last year’s flood control corruption controversy. Latest data from the Department of Budget and Management (DBM) showed that infrastructure and other capital expenditures declined by 43.5 percent to P147.8 billion in the first quarter from P261.8 billion in the same period last year. The lower outturn “significantly dampened the overall spending growth for the period,” which only grew by 3.2 percent to P1.490 trillion from last year’s P1.444 trillion. Some projects were frontload-
ed ahead of the election spending ban, which resulted in high base effects in the first quarter of 2025, while agencies are also still completing prior year’s obligations and carryover projects, the DBM said. The flood control scandal that surfaced last year has led the government to require stricter validation and processing of billing claims to ensure payments match actual accomplishments and comply with the law. See “Infraspend,” A2
WAR RISKS PUSH PHL TOWARD TECH, CYBER FOCUS–EXPERTS By Bless Aubrey Ogerio
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ODAY’S conflicts are no longer limited to battlefields, with energy routes, digital systems and private industry now part of the frontline, experts at a recent discussion on geopolitical and economic risks said. Prof. Rohan Gunaratna of the S. Rajaratnam School of International Studies said modern warfare is no longer confined to land, sea, and air, stressing that new domains are now central to national security. “If there is war in this region,
you have to build not only the capabilities of chaos, land and naval, but cyber and outer space,” Gunaratna said at the Asian Institute of Management (AIM) business conference in Makati City on Thursday. “But you need one more capability. That is the fifth domain of warfare.” He added that global dependence on Middle East energy flows makes the region central to global stability, noting that disruptions in key maritime chokepoints could have widespread consequences. “The Middle East is the heartland See “War,” A2
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Peza, BCDA in investment tieup for New Clark City By Bless Aubrey Ogerio
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May 11, 2026 | 10 AM
KRISTEN “IZZIE” SHAYNE ENRILE
IN GOOD HANDS A rice retailer in Las Piñas City passes a receipt and change through a tiny service window—an everyday exchange that now reflects a much bigger national balancing act over rice supply and prices. Behind the counter, each sale sits within a wider effort to steady grain availability, as Agriculture Secretary Francisco Tiu Laurel Jr. stresses the urgency of securing reliable imports from Vietnam, the Philippines’ main rice supplier. A one-year agreement covering 1.5 million metric tons is in place, aiming to keep shipments flowing without interruption through April 2027. The P50per-kilo price cap on imported rice could be extended for up to 60 days, the Department of Agriculture said at the weekend. Story in Second Front Page, A12. NONIE REYES
JUSTINE XYRAH GARCIA BusinessMirror Macroeconomy Reporter
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HE Philippine Economic Zone Authority (Peza) and the Bases Conversion and Development Authority (BCDA) have consolidated their investment promotion efforts for New Clark City in Tarlac, presenting it as a single, coordinated destination for locators and developers. In a recent joint investor briefing, the two agencies laid out investment opportunities in New Clark City, which spans Capas and Bamban, and forms part of the Luzon Economic Corridor.
New Clark City, for them, is a gateway for logistics, manufacturing, trade, and technology-driven industries, supported by its proximity to key infrastructure such as Clark International Airport, Subic Bay and major expressways. The briefing was anchored on an existing memorandum of agreement between Peza and BCDA that seeks to streamline investment facilitation for the planned smart city development, from initial inquiry to actual business operations. Peza Director General Tereso Panga said the partnership is intended to strengthen the country’s competitiveness in attracting in-
vestments by offering a more coordinated government approach. “The strong partnership between Peza and BCDA reflects our shared commitment to making the Philippines a more competitive and investment-friendly destination,” Panga said. “With New Clark City’s strategic location within the Luzon Economic Corridor, world-class infrastructure, and future-ready ecosystem, we are opening more opportunities for global investors seeking sustainable and high-growth locations in the region,” he added. For his part, BCDA president and chief executive officer Joshua
Bingcang said the collaboration is aimed at removing friction for investors by integrating processes across agencies involved in site development and operations. “As a flagship development under the Luzon Economic Corridor, New Clark City is designed to become a future-ready hub for industries, innovation, and sustainable growth,” Bingcang said. As of December last year, there are five Peza-registered ecozones in the Clark area hosting 24 locator companies, with combined investments exceeding P62 billion and employing more than 29,000 workers.
PESO EXCHANGE RATES n US 61.4920 n JAPAN 0.3884 n UK 82.4423 n HK 7.8510 n CHINA 9.0592 n SINGAPORE 48.2025 n AUSTRALIA 44.3972 n EU 71.7735 n KOREA 0.0412 n SAUDI ARABIA 16.3869 Source: BSP (May 15, 2026)