Ejercito: Budget cuts to DOTr will cripple railway projects

Ejercito: Budget cuts to DOTr will cripple railway projects

MANILA: Senator Joseph Victor “JV” Ejercito has appealed to his colleagues to restore the Department of Transportation (DOTr) budget for the country's railway system. He claimed that the cuts might affect the ongoing railways project, particularly the North-South Commuter Railway System and the first phase of the Metro Subway System.

KEY TAKEAWAYS

  • Which aspects of the railway projects are funded by the national government?

    The value added tax that would be imposed by the projects as well as the right of way acquisition of land for railway facilities will be funded by the national government.
  • Who funds the majority of the current railway projects in the Philippines?

    International partners including the Asian Development Bank and Japan International Cooperation Agency fund the majority of the country's railway projects.
  • “I appeal to my colleagues to restore the budget that was cut. Halos kalahati (Almost half). This will definitely affect the schedules. This will also entail financial charges. We will be burdened by these financial charges,” Ejercito stated during the DOTr budget interpellation on Wednesday.

    He said that the budget for the commuter railway system was reduced by about P40 billion, while the proposed budget for the subway system was reduced by P10 billion.

    The unprogrammed funds in the budget, on the other hand, were reduced by the Senate by about P69 billion, which would be utilized to pay the contractors for the said project's live contracts.

    “Both the national government and the country’s economic recovery will suffer from these budget cuts on the railway sector,” Ejercito said.

    According to him, the development of the country's railway system will serve as a catalyst for economic progress.

    “It will bring massive development, not just in Metro Manila, but in other parts of the country as well, and will create jobs and improve the lives of Filipinos by spreading out development in the countryside,” he stated.

    President Ferdinand Marcos Jr.'s goal for railway development, which would open the way for the “growth triangles” that include airports, seaports, and economic centers in the country will also be affected by the budget cuts, according to Ejercito.

    International partners including the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) fund the majority of the country's railway projects.

    The value added tax that would be imposed by the projects as well as the right of way acquisition of land for railway facilities will be funded by the national government.

    “More importantly, the delay in the completion of our railway projects because of lack of government support will also bring a lack of confidence from investors,” Ejercito added. “It will paint a bad picture in the international community, while the President is trying hard to sell the country, that we are already open for business. The government should do its part.”

    Photo from Asian Development Bank Facebook page

    Also read: DOTr considers PPP for projects with limited funding

    Sell your car at the best price

    Verified and genuine buyers Verified and genuine buyers
    Free listing Free listing
    List your car

    You might also be interested in

    • Upcoming

    Latest Car Videos on Zigwheels

    Zigwheels
    Watch Car Videos

    Car Articles From Carmudi

    • journal
    • advice
    • financing
    • insurance
    • Honda previews exhibit for upcoming 2023 Japan Mobility Show
      Honda previews exhibit for upcoming 2023 Japan Mobility Show
      Paulo Papa, Today
    • LTO to deploy additional personnel to man EDSA bus lane
      LTO to deploy additional personnel to man EDSA bus lane
      Paulo Papa, Today
    • Geely opens 38th dealership in PH
      Geely opens 38th dealership in PH
      Ruben Manahan IV, Oct 03, 2023
    • Jetour signs partnership with Midori Clark
      Jetour signs partnership with Midori Clark
      Ruben Manahan IV, Oct 03, 2023
    • Will Hyundai PH offer Stargazer X, Custo to local market?
      Will Hyundai PH offer Stargazer X, Custo to local market?
      Paulo Papa, Oct 03, 2023
    • How intense heat damages your car
      How intense heat damages your car
      Cherryl Anne Cruz, May 08, 2020
    • How Often Should I Clean My Air Conditioning System?
      How Often Should I Clean My Air Conditioning System?
      Cherryl Anne Cruz, Jul 21, 2017
    • How Can You Avoid Back Pain When Driving?
      How Can You Avoid Back Pain When Driving?
      Margarett Escano, Sep 15, 2017
    • How to Buy a Family Car
      How to Buy a Family Car
      Cherryl Anne Cruz, Jul 21, 2017
    • How to Test Drive a Car Before Buying
      How to Test Drive a Car Before Buying
      Wilbert Tan, Jul 21, 2017
    • Advantages and Disadvantages of Car Financing
      Advantages and Disadvantages of Car Financing
      Wilbert Tan, Jul 21, 2017
    • Most Common Car Financing Issues & How to Solve Them
      Most Common Car Financing Issues & How to Solve Them
      Cherryl Anne Cruz, Jul 21, 2017
    • What Is Effective Interest Rate
      What Is Effective Interest Rate
      Wilbert Tan, Jul 21, 2017
    • What Is a Secured Car Loan?
      What Is a Secured Car Loan?
      Cherryl Anne Cruz, Jul 21, 2017
    • Car Financing vs. Car Loans
      Car Financing vs. Car Loans
      Cherryl Anne Cruz, Jul 21, 2017
    • Is My Address Making My Car Insurance Expensive?
      Is My Address Making My Car Insurance Expensive?
      Cherryl Anne Cruz, Jul 21, 2017
    • Everything You Need to Know About GAP Insurance
      Everything You Need to Know About GAP Insurance
      Cherryl Anne Cruz, Jul 21, 2017
    • Car Insurance for Newlyweds- Combining Policies
      Car Insurance for Newlyweds- Combining Policies
      Wilbert Tan, Jul 21, 2017
    • How to Calculate Your Premium
      How to Calculate Your Premium
      Wilbert Tan, Jul 21, 2017
    • The Different Levels of Car Insurance in the Philippines
      The Different Levels of Car Insurance in the Philippines
      Cherryl Anne Cruz, Jul 21, 2017