The Department of Transportation (DOTr) was allocated a P166.7 billion budget under the 2023 National Expenditure Program (NEP)--a 120.4 percent increase from its enacted budget worth P75.8 billion this year.
The House Committee on Appropriations held its budget hearing with officials of the DOTr on Tuesday, Sept. 13.
A total of 81.6 percent of its P166.7-billion budget–or P113.987 billion–will go be coursed to rail transport programs, something that was welcomed by the appropriations panel.
“In particular, the President noted that a modern and efficient train system has the greatest potential to deliver our economic growth goals and international environmental commitments. On a personal note, since I come from the Bicol Region, train systems like the South Rail project are of much interest to me and my constituents. It is our fervent hope that it will come to fruition under President Marcos’s leadership and under your capable hands, Sec. Jimmy ,” said Appropriations Chairman and Ako Bicol Party-list Rep. Elizaldy Co in his opening remarks.
Appropriations panel Senior Vice Chairperson Marikina City 2nd district Rep. Stella Quimbo also pointed out the major fund increase, particularly for rail transportation systems.
“The agency is mandated to promote, maintain, and regulate a dependable and coordinated network of transportation as well as safe and reliable transportation services. The new administration’s 8-point socioeconomic agenda seeks to reduce transport costs and streamline regulatory processes. This is the reason why DOTr received a 120.4-percent increase in the 2023 NEP. It will fund projects such as the Metro Manila Subway, the North-South Commuter Railway, and the LRT Line 1 Cavite Extension,” Quimbo said in her opening remarks.
The upgrade of the country’s railway systems is a priority of the Marcos administration.
However, it was noted by the Congressional Policy and Budget Research Department in a Sept. 12 report that the DOTr had shown low budget utilization rates, which it said casts doubt on the agency’s “readiness and capacity to execute projects".
The DOTr had a disbursement rate of 41.7 percent in 2021, the highest rate since 2016’s 52.9 percent. It averaged a rather poor disbursement rate of 26.9 percent from 2017 to 2021.
“The 120 percent increase from prior years allocation might be a big ask. But, with continuously improving utilization rates complemented by our ongoing efforts to address the causes of delays in project implementation, we pledge to deliver our target outputs in 2023,” Bautista vowed to the committee.
Despite the hefty budget increase under the NEP, the DOTr's public utility jeepney (PUJ) modernization program wasn't allocated any funds for next year.