Connect with us

Hi, what are you looking for?

News

No more transport service contracting fund in DoTr’s 2022 proposed budget

PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Transportation (DoTr) said a P10-billion fund supposedly allotted for the service contracting program that would help public transport drivers and operators was slashed from its proposed 2022 budget, officials said in a House budget hearing on Wednesday.

“We included service contracting in our submitted (budget) proposal to the Department of Budget and Management which was around P10 billion. Unfortunately, this was not included in the National Expenditure Program,” said DoTr Undersecretary Giovanni Z. Lopez.

The government’s service contracting program would pay public utility vehicle (PUV) drivers a fixed income based on kilometers traveled instead of the number of passengers along with a one-time incentive payout of P4,000.

The program started as part of the Bayanihan II, a law on the pandemic response, with P5.58 billion allotted to DoTr. It was suspended on July 1, with the DoTr failing to disburse the total amount, as the validity of the law expired. It resumed on Sept. 10 after P3 million was allotted for service contracting under the 2021 General Appropriations Act.

The DoTr is proposed to receive P150.76 billion next year, an increase of 72% from this year’s P87.45 billion.

Samar Rep. Edgar Mary S. Sarmiento said the contracting program should be continued with an allocation of at least P3 billion. “The most we could use the (P3 billion for 2021) is (for) six months (of payments) and this pandemic will be another flu in the making (and will last) 5 years… If the jeepneys won’t generate profit, the industry will die,” he said in a mix of English and Filipino.

Mr. Sarmiento also said that public utility drivers are not earning a profit as operations are limited to 50% of passenger capacity to observe distancing.

Land Transportation Franchising and Regulatory Board Chairman Martin B. Delgra III, meanwhile, said during the hearing that President Rodrigo R. Duterte has also approved the release of P3.38 billion worth of unpaid Bayanihan II funds for drivers hired under the service contracting program.

He said they are aiming to complete the payments within the next two to three days. — Russell Louis C. Ku

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

StackLeague is now gathering over 6,000 developers, software engineers and programmers all across the Philippines who share the same interest in competing while also...

News

Insights to Inspire aims to spark ideas that empower businesses to pursue bigger goals through data and information. Read our insights on current issues...

News

By Luz Wendy T. Noble, Reporter THE PHILIPPINE central bank kept the benchmark policy rate at a record low on Thursday, as it tries...

News

BW FILE PHOTO By Beatrice M. Laforga, Reporter THE NATIONAL Government’s budget deficit tripled to P120.9 billion in August from a year earlier after...

News

FREEPIK PRESIDENT Rodrigo R. Duterte has signed into law a measure that will tax Philippine offshore gaming operators, according to the presidential palace. “This...

News

By Kyle Aristophere T. Atienza, Reporter NERI J. COLMENARES was 18 when he was jailed and tortured by agents of the late Philippine dictator...

You May Also Like

When people envision technology overtaking society, many think of The Terminator and bulletproof robots. Or Big Brother in George Orwell’s Nineteen Eighty-Four, a symbol...

Financial Advisors

Stock Markets9 hours ago (Jul 02, 2020 04:45AM ET) (C) Reuters. ROME (Reuters) – World food prices rose in June to post their first...

Economy

SAN FRANCISCO — The spread of the coronavirus has meant feast or famine for technology start-ups. While many are cutting staff and slashing costs...

Economy

OAKLAND, Calif. — Jack Dorsey has won plaudits for his corporate activism during the coronavirus crisis, taking on President Trump in his role as...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Respect Investment. All Rights Reserved.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!