P230.4B of draft 2015 national budget earmarked for transport development

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ID-100105788The Aquino government has allotted P230.4 billion out of the proposed P2.606-trillion 2015 national budget for the development of the country’s transportation sector.

The Department of Budget and Management (DBM) on July 30 submitted to Congress the draft P2.606-trillion national budget for next year.

This budget, which is 15.1% higher than the current year’s P2.265-trillion, represents 18.4% of the country’s gross domestic product and reflects a jump in the Aquino administration’s growth assumption of 7% to 8% for 2015.

“It has been four years since President Aquino assumed his position, and the 2015 proposed budget—aptly themed ‘Kaunlaran Para sa Lahat’(Progress for All)—shows the progression of our priorities,” Budget and Management Secretary Florencio Abad said in a statement.

“Now that we’ve set many of the critical foundations of good governance, we’re working harder at bringing inclusive growth to the country through transparent, accountable, and participatory budgeting,” Abad added.

According to DBM, the 2015 budget focuses on inclusive development—that is, investing in people through adequate and well-targeted social protection and basic social services, and the creation of more meaningful employment and livelihood opportunities.

The P230.4-billion transportation budget seeks to lower the cost of and cut the time for transporting goods and people, thereby “spurring more trade and investments in safer, faster, and cheaper ways.”

Of the total, P195.1 billion will be allocated for road transport. Of this, P174.5 billion will be set aside for the road and bridge programs of the Department of Public Works and Highways that include implementing new construction design specifications. One of the new specifications being considered is increasing concrete pavement thickness from 230 millimeters to 280mm.

With the country improving its ranking for road quality from 114th in 2010-2011 to 87th in 2013-2014 in the World Economic Forum Global Competitiveness Index, the government aims to “push this ranking even higher.”

Aside from road works, more airports and seaports will be built to accelerate economic activity and provide more employment opportunities.

The 2015 budget for aviation has been increased by 45.8% to P13.3 billion, while the budget for port development has been raised to P1.5 billion from P1.1 billion in 2014, to be used in the construction, development, repair, and rehabilitation of 40 seaports.

To reinforce maritime security, the Philippine Coast Guard will be provided P3.5 billion to purchase patrol vessels for use not only to enhance patrol capability but also in search-and-rescue operations.

Meanwhile, the P16.9-billion subsidy for railways in the 2015 budget will enable the administration to reduce transfer time by 50%, transport costs by 8.5%, logistics costs of goods and services from 23% to 15%, and transport-related accidents by 2%. It will also generate time savings equivalent to P54 billion.

Projects to be funded by the railway budget include the LRT Line 1 South Extension (P4.8 billion), LRT Line 2 East Extension (P2.4 billion) and West Extension (P200 million); MRT 3 subsidy (P4.7 billion) and infrastructure outlay (P804 million); and PNR Main Line South Rehabilitation (P547 million).

Of the top 10 departments with the highest budgets, the Department of Transportation and Communications was allotted P59.463 billion.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net