DOTC gets 8th biggest budget share for 2015 with P48.9B allotment

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ID-100286986The Department of Transportation and Communications (DOTC) was allocated P48.9 billion, or 1.9% of the total national budget for 2015, making it eighth among the top 10 departments given the highest budget allocation under Republic Act No. 10651, or the General Appropriations Act (GAA) of 2015.

DOTC earlier said it would give “special attention” to much-needed upgrades for land transportation next year, especially for rail lines.

For starters, DOTC announced it will implement on January 4 the P11 (base fare) + P 1 (per kilometer) formula for fares at the Light Rail Transit Lines 1 and 2 (LRT-1 and LRT-2) and the Metro Rail Transit Line 3 (MRT-3), which come after several years of deferring its implementation.

Based on the new fare matrices, rates for end-to-end trips on the MRT-3 will increase to P28 from P15 (from North Avenue to Taft Avenue and vice versa); P30 from P20 on LRT-1 (from Baclaran to Roosevelt and vice versa); and P25 from P15 on LRT-2 (from Recto to Santolan and vice versa).

DOTC said that with the fare increase, savings of about P2 billion in government subsidy can be diverted to development projects and relief operations to benefit those who don’t use the LRT or MRT.

But in a press release, Bayan Muna party-list Rep. Neri Colmenares said they will file a petition with the Supreme Court once the DOTC implements the MRT/LRT fare hike. “As it is, the best way to defer the MRT/LRT fare hike is for the Supreme Court to issue a temporary restraining order against it. The DOTC did not follow due process in this case and no sufficient public hearing was held. We also fear that the P2 billion that the DOTC would be able to save by increasing the fares of the MRT and LRT would just be turned to ‘pork barrel’,” said Colmenares.

Before 2014 ended, President Benigno Aquino III signed the P2.606 trillion national budget for 2015, which is 15% higher than last year’s, to cover post-disaster rehabilitation and climate change requirements.

Aquino also signed the P22.4-billion supplemental budget for 2014, the bulk of which will go to reconstruction projects in areas hit by super typhoon Yolanda last year.

This is the fifth consecutive year that the national budget was enacted on time.

“We remain optimistic about our growth prospects in 2015, especially with this budget supporting the country’s development targets. It’s true that this year presented some formidable challenges that we had to reckon with, particularly with agency spending,” Department of Budget and Management Secretary Florencio Abad said.

“Next year, however, we have good reason to expect better and more efficient expenditure, as departments adjust to the reforms we’ve set in place. Ultimately, our goal is to make the budget work for the people, so that it is an instrument of progress and citizen empowerment,” Abad added.

Under R.A. 10651, social services are amply supported, with major social welfare protection and development programs getting sizeable budgets for next year.

The Aquino administration’s flagship anti-poverty program, the Pantawid Pamilyang Pilipino Program (4Ps), corners P62.3 billion of next year’s national budget to address the needs of 4.3 million families in need.

Other major allocations under the 2015 GAA include a P53.9-billion allotment for basic education facilities, which covers the construction of 31,728 classrooms and repair of 9,500 others, as well as the development of 13,586 water and sanitation facilities, and the procurement of 1.3 million seats.

At the same time, Philhealth premium subsidies will receive P37.1 billion from the total budget to benefit 15.4 million poor and near-poor families, while P11 billion from the GAA will be directed to socialized housing for in-need families, particularly those living in danger zones or high-risk areas.

The other nine departments with the highest budgets for 2014 are Education (P309.5 billion), Public Works and Highways (P219.9 billion), National Defense (P123.2 billion), Interior and Local Government (P136.2 billion), Health (P90.8 billion), Social Welfare and Development (P83.4 billion), Agriculture (P80 billion), Environment and Natural Resources (P23.9 billion), and Science and Technology (P13.1 billion).

Image courtesy of Stuart Miles at FreeDigitalPhotos.net