Connect with us

Hi, what are you looking for?

Economy

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

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Your email address will not be published.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 *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
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

Economy

LONDON — Anyone can be a banker these days, you just need the right code.   Global brands from Mercedes and Amazon to IKEA and...

Economy

AllDay Supermarket has tapped PayMaya to power its self-checkout counters with cutting-edge technology to elevate customers’ grocery shopping experience. A first for the Philippine retail industry, AllDay Supermarket...

Economy

INFLATION in the first eight months stood at 4.4%, quicker than the central bank’s 4.1% average inflation forecast for 2021. — PHILIPPINE STAR/ MICHAEL...

Economy

By Kyle Aristophere T. Atienza, Reporter PHILIPPINE President Rodrigo R. Duterte’s political allies — at least those who are running for the country’s top...

Economy

The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/...

Economy

A SENIOR economist at the Asian Development Bank (ADB) said a local bourse’s program for micro, small, and medium enterprises (MSME) is key to...

You May Also Like

Investing

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

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.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 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



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!