EconomyForex

Transport workers allocated P10 billion for service contracts

2 Mins read
PHILSTAR

FUNDING for the program to support transport workers via a service contracting program was raised to P10 billion from P6 billion in the Senate’s version of the 2022 Budget, though doubts were expressed on whether the Transportation department would be able to disburse the full amount.

Under the service contracting program, drivers and operators of public utility vehicles (PUVs) are paid by the government to ply their routes on a per kilometer basis. The program is meant to offset the effects of the capacity restrictions caused by the pandemic.

During the Monday plenary debates on the P120-billion budget of the Department of Transportation (DoTr), Senate President Pro Tempore Ralph G. Recto expressed his support for the program, but proposed that other agencies might be better able to implement it, citing the DoTr’s low utilization rate for the program’s funding in 2021.

“I agree that we need to help the PUV sector, but I just don’t know if the DoTr is the best agency to do it,” he said.

The 2021 budget for the program includes a P5.5-billion allocation under the second stimulus package, known as Bayanihan II, and P3 billion from the General Appropriations Act (GAA). The department’s disbursement estimates as of Nov. 16 show a utilization rate of only 34.2% from the Bayanihan II funds and 55% for the cash from the GAA.

“Maybe it would even be better if it will be handled by the Department of DSWD (Social Welfare and Development) or the DoLE (Department of Labor and Employment),” Mr. Recto said, noting that DoTr is “very slow in obligating, disbursing all their appropriations.”

Senator Mary Grace Natividad S. Poe-Llamanzares called Mr. Recto’s concerns valid, but said the low utilization was caused by the delays in the Department of Budget and Management (DBM).

The funds were “actually released later, likely FLRs (for late release) of DBM.”

Senators said the DBM may not have treated the program as a priority.

Senator Francis Pancratius N. Pangilinan asked about the number of expected beneficiaries, to which Ms. Poe replied 50,000.

“We hope they are able to identify those who are most in need,” said Mr. Pangilinan during the plenary, noting that smaller operators receive no support because bus operators are given priority.

Ms. Poe said bus operators are higher on the priority list because they can potentially transport more people, and that jeepney drivers are difficult to reach.

“We will make sure to remind the DoTr to include, especially, the most marginalized sectors among the public utility vehicle drivers,” she said. — Alyssa Nicole O. Tan

Related posts
EconomyForex

ADB and GCash Fuse partner to unlock inclusive finance for MSMEs, women and fight poverty in PHL

5 Mins read
(L-R) Martha Sazon, President and CEO of Mynt, the parent company of GCash; Tony Isidro, President and CEO of Fuse Financing Inc.;…
EconomyForex

ADB sees PHL returning to 6% growth by 2027

2 Mins read
A photo shows the central business district in Makati City. — PHILIPPINE STAR/RYAN BALDEMOR THE PHILIPPINE ECONOMY could return to around 6%…
EconomyForex

Groups flag P633 billion corruption risk in bicam-approved 2026 budget

2 Mins read
HANDOUT COURTESY OF OFFICE OF SEN. GATCHALIAN Multisectoral groups on Monday raised their recommendations on the P6.793-trillion national budget approved by the…
Power your team with InHype
[mc4wp_form id="17"]

Add some text to explain benefits of subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *