State-Run Companies Seek Higher Budgets in 2026

Strategic Insights -

The Department of Budget and Management (DBM) has proposed a significant increase in budgetary support to state-run companies for 2026, with a total allocation of P149.654 billion, a 17.4-percent increase from the current year's budget of P127.428 billion. The bulk of this allocation, P147.152 billion, will be used as subsidies for government-owned and -controlled corporations (GOCCs), with the Philippine Health Insurance Corp. (PhilHealth) set to receive the largest subsidy of P53.262 billion.

Key Takeaways:

  • The proposed budgetary support to state-run companies for 2026 is P149.654 billion, a 17.4-percent increase from the current year's budget of P127.428 billion.
  • The bulk of the budget, P147.152 billion, will be used as subsidies for GOCCs.
  • PhilHealth will receive the largest subsidy of P53.262 billion for next year, due to the funding of annual insurance premiums for indigent beneficiaries.
  • The National Electrification Administration (NEA) will see a 10.3-percent increase in budgetary support to P6.444 billion to provide subsidies for the electrification of 3,019 unenergized sitios.
  • Five GOCCs will face a reduction in their budgetary support next year due to one-time allocations and project completions.
  • As of end-August, majority of the allocations for the top 10 GOCCs have already been released, amounting to P107.23 billion, with a remaining balance of P9.3 billion.

Statistics:

  • The proposed budgetary support to state-run companies for 2026 is P149.654 billion.
  • The increase in budgetary support is 17.4 percent from the current year's budget.
  • The bulk of the budget, P147.152 billion, is allocated as subsidies for GOCCs.
  • PhilHealth will receive a subsidy of P53.262 billion for next year.
  • The NEA will receive a budgetary support of P6.444 billion, an increase of 10.3 percent.
  • Five GOCCs will see a reduction in their budgetary support next year due to one-time allocations and project completions.

Sources:

  • "State-run companies seek higher budget allocations in 2026", Business World News
  • Department of Budget and Management (DBM) Assistant Secretary Mary Anne Z. Dela Vega's presentation to the Senate Committee of Finance.