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

    Hazel Nicole Carreon

    Hazel Nicole Carreon

    Hazel is a news and feature writer for ZigWheels Philippines. She studied communication at De La Salle Lipa, where she was exposed to writing about various topics, which later has become her passion and now her career.

    Read Full Bio

    Sell your car at the best price

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

    PIMS 2024

    Trending & Fresh Updates

    You might also be interested in

    • News
    • Featured Stories

    Featured Cars

    • Upcoming
    • Geely Coolray 2025
      Geely Coolray 2025
      ₱1.199 - 1.299 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • Kia Carens 2025
      Kia Carens 2025
      ₱1.57 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • Toyota Vios 2025
      Toyota Vios 2025
      ₱832,000 Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • MG RX8
      MG RX8
      ₱1.05 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • Omoda 7
      Omoda 7
      Price coming soon
      Expected Launch TBA Alert Me When Launched

    Latest Car Videos on Zigwheels

    Zigwheels
    • 2025 Chery Tiggo 2 Pro Spec Guide | Zigwheels.Ph
      2025 Chery Tiggo 2 Pro Spec Guide | Zigwheels.Ph
      19 Dec, 2024 .
    • 2024 Toyota Yaris Cross V Review | Zigwheels.Ph
      2024 Toyota Yaris Cross V Review | Zigwheels.Ph
      19 Dec, 2024 .
    • 2025 Toyota Tamaraw First Look | Zigwheels.Ph
      2025 Toyota Tamaraw First Look | Zigwheels.Ph
      11 Dec, 2024 .
    • 2025 Mitsubishi Montero Sport Black Series 4x4 Spec Guide | Zigwheels.Ph
      2025 Mitsubishi Montero Sport Black Series 4x4 Spec Guide | Zigwheels.Ph
      05 Dec, 2024 .
    • 2024 Kia Sonet SX Review | Zigwheels.Ph
      2024 Kia Sonet SX Review | Zigwheels.Ph
      05 Dec, 2024 .
    • Kia EV3 and EV5 First Look at Kia EV Day 2024 | Zigwheels.Ph
      Kia EV3 and EV5 First Look at Kia EV Day 2024 | Zigwheels.Ph
      05 Dec, 2024 .
    • 2025 Mitsubishi Montero Sport Black Series 4x4 Review | Zigwheels.Ph
      2025 Mitsubishi Montero Sport Black Series 4x4 Review | Zigwheels.Ph
      05 Dec, 2024 .
    • 2024 Toyota Yaris Cross V Review | Zigwheels.Ph
      2024 Toyota Yaris Cross V Review | Zigwheels.Ph
      05 Dec, 2024 .
    • 2024 VinFast VF 5 Review | Zigwheels.Ph
      2024 VinFast VF 5 Review | Zigwheels.Ph
      05 Dec, 2024 .
    • 2024 Honda CR-V RS e:HEV Review | Zigwheels.Ph
      2024 Honda CR-V RS e:HEV Review | Zigwheels.Ph
      25 Nov, 2024 .
    Watch Car Videos

    Car Articles From Carmudi

    • journal
    • advice
    • financing
    • insurance
    • Geely Motor PH establishes new parts center in Laguna
      Geely Motor PH establishes new parts center in Laguna
      Ruben Manahan IV, Dec 19, 2024
    • LTO to intensify ‘road presence’ in time for holidays
      LTO to intensify ‘road presence’ in time for holidays
      Ruben Manahan IV, Dec 10, 2024
    • ‘Mixed’ pump price adjustments to continue this week
      ‘Mixed’ pump price adjustments to continue this week
      Ruben Manahan IV, Dec 09, 2024
    • Bosch 12.12 Sale starts today
      Bosch 12.12 Sale starts today
      Ruben Manahan IV, Dec 09, 2024
    • Momo makes PH comeback
      Momo makes PH comeback
      Ruben Manahan IV, Dec 05, 2024
    • Senior citizens and driver’s license: What changes after 60?
      Senior citizens and driver’s license: What changes after 60?
      Carmudi PH, Dec 09, 2024
    • How EVIDA is shaping the future of EV registration in the Philippines
      How EVIDA is shaping the future of EV registration in the Philippines
      Carmudi PH, Dec 03, 2024
    • Here’s how to add and verify a medical certificate on the LTMS portal
      Here’s how to add and verify a medical certificate on the LTMS portal
      Carmudi PH, Nov 25, 2024
    • Emergency guide: How to handle brake failure safely
      Emergency guide: How to handle brake failure safely
      Carmudi PH, Nov 21, 2024
    • Save your clutch: 5 things manual drivers should never do
      Save your clutch: 5 things manual drivers should never do
      Carmudi PH, Nov 15, 2024
    • Exploring car loan programs in the Philippines
      Exploring car loan programs in the Philippines
      Carmudi PH, Dec 16, 2024
    • Bank vs Dealer Financing: Which is better for Filipino car buyers?
      Bank vs Dealer Financing: Which is better for Filipino car buyers?
      Carmudi PH, Dec 11, 2024
    • Hyundai Finance: Exploring Hyundai Philippines’ range of car payment options
      Hyundai Finance: Exploring Hyundai Philippines’ range of car payment options
      Carmudi PH, Dec 02, 2024
    • Understanding Balloon Payment: A flexible financing option for Filipino buyers
      Understanding Balloon Payment: A flexible financing option for Filipino buyers
      Carmudi PH, Nov 23, 2024
    • How to negotiate the best interest rate for your car loan
      How to negotiate the best interest rate for your car loan
      Carmudi PH, Nov 11, 2024
    • Why you need automatic car insurance coverage in the Philippines
      Why you need automatic car insurance coverage in the Philippines
      Carmudi PH, Dec 06, 2024
    • Understanding Pay-How-You-Drive Insurance in the Philippines
      Understanding Pay-How-You-Drive Insurance in the Philippines
      Carmudi PH, Nov 28, 2024
    • Reviewing Oona Car Insurance: Benefits, key features, cost and more
      Reviewing Oona Car Insurance: Benefits, key features, cost and more
      Carmudi PH, Nov 19, 2024
    • Reviewing SGI Car Insurance: Pros, cons, coverage options & more
      Reviewing SGI Car Insurance: Pros, cons, coverage options & more
      Carmudi PH, Oct 31, 2024
    • No car insurance? Here’s what all wrong can happen in the Philippines
      No car insurance? Here’s what all wrong can happen in the Philippines
      Carmudi PH, Oct 29, 2024

    Compare

    You can add 3 variants maximum*