Review Santos Gallarzan

1.1 Definition and Status quo

A Government-owned and controlled corporation (GOCC), sometimes with an "and/or", is a term in the Philippines used to describe government-owned corporations that conduct both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System, a social security system for government employees. There are over 200 GOCCs. GOCCs both receive subsidies and pay dividends to the national government. The national government's subsidies to government-owned and controlled corporations (GOCCs) jumped by 200% in the first quarter of 2015, with the majority used to support the NEA. The subsidies released to government firms in January to March totaled to P3.69 billion ($81.8 million), up from the P1.23 billion ($27.2 million) registered a year ago, based on the latest Cash Operations Report.

A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from Government, the term subsidy can relate to any type of support - for example from NGOs or implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, depreciation write-offs, rent rebates). Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/Production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/Consumption subsidies commonly reduce the price of goods and services to the consumer.

1.2 Relevance

Founders of any business set certain business goals in terms of revenue. Key goal is to make profit and nothing is worth until business receives the money for goods or services supplied to...