LETTER OF INSTRUCTION NO. 305

: All government offices and government-owned or controlled corporations receiving, programming, and/or providing government subsidies in any amount or form for any purpose are required to submit reports.
: Reports must be submitted to the National Economic and Development Authority (NEDA).
: Reports must be submitted within sixty (60) days after the end of each fiscal year, including the fiscal year 1975.
: Yes, special interim reports must also be submitted whenever requested by the National Economic and Development Authority (NEDA).
: Government subsidy includes price support schemes for specific commodities, aids or grants, interest foregone from expansion of loans at preferred rates, interest paid on borrowings in excess of normal rates, tax and tariff exemptions and rebates, as well as direct government outlays.
: NEDA, in consultation with the concerned agencies, must prepare the necessary rules for the implementation of this letter within sixty (60) days after its issuance.
: Cooperation is imperative to obtain data necessary for effective and rational economic policy formulation on government subsidies by the National Economic and Development Authority Board.
: It refers to the interest income that the government or government-controlled entities lose when they provide loans, advances, or discounts at lower-than-market (preferred) interest rates as a form of subsidy.