Senator urges review of subsidies to state firms

A SENATOR on Monday said congressional oversight of state spending should cover subsidies to government-owned and -controlled corporations (GOCC), as the Budget department tightens spending on state firms.

In a statement, Senator Sherwin T. Gatchalian said the Department of Budget and Management (DBM) has issued a memorandum ordering the review of GOCCs that are “heavily dependent” on state subsidies, with the end view of deciding whether they should be restructured or converted into a government agency.

“I strongly support the DBM’s call for fiscal discipline. We need to make a proper assessment of GOCCs that remain on life support from the national government year after year,” said Mr. Gatchalian, who heads the Senate Finance Committee.

“The DBM and the Governance Commission for GOCCs must prioritize weeding out non-performing GOCCs. For as long as these GOCCs are active, they can request subsidies, making a significant dent in the national budget,” he added. — Kenneth Christiane L. Basilio