Connect with us

Hi, what are you looking for?

Stock Markets

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

Click to comment

Leave a Reply

Your email address will not be published.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

You May Also Like

Breaking News

TikTok is one of the most rapidly growing platform. People across all the spectrum of age, gender, communities are joining the platform to...

Finance

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition...

Breaking News

The $160,000 SS Dolphin is a hybrid 1950s Corvette clone from China – Business Insider Amazon Prime Day Business Insider logoThe words “Business Insider”....

Finance

A shopping centre in Coventry that eight years ago was valued at £37 million was sold this week for only £4.9 million, setting...

Disclaimer: CaptainOfSuccess.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 Captain Of Success. All Rights Reserved.