The Fiscal Incentives Review Board (FIRB), chaired by Finance Secretary Ralph G. Recto, has approved ₱20.9 billion in tax subsidies for government institutions for fiscal years 2024 and 2025. The move aims to enhance public service delivery by allowing agencies to redirect resources from tax obligations to operational efficiency.
Tax subsidies enable the national government to shoulder the taxes and duties that would otherwise be paid by public institutions, a measure aligned with President Ferdinand R. Marcos Jr.’s push for more responsive government services.
“This move is in line with President Marcos Jr.’s commitment to delivering more responsive public services,” said Recto. “These tax subsidies will help expedite and expand government service delivery for the Filipino people.”
As of May 21, 2025, the FIRB approved 10 subsidy applications through its Technical Committee, with all benefiting agencies achieving a 100 percent utilization rate based on their Special Allotment Release Orders (SAROs).
For 2024, key recipients include the Manila International Airport Authority (₱7.5B), National Power Corporation (₱6.0B), Philippine Deposit Insurance Corporation (₱4.5B), and National Transmission Corporation (₱2.0B). Other recipients include the Armed Forces Commissary (₱305M), Bureau of the Treasury (₱223M), and UP National Institute of Physics (₱6.6M).
For 2025, the Bureau of the Treasury and the Armed Forces Commissary were again granted subsidies amounting to ₱223.2 million and ₱58.5 million, respectively.
The FIRB, under existing law, is authorized to grant such subsidies to GOCCs, government instrumentalities, and state universities to help them fulfill their mandates without the fiscal strain of tax payments.
