Philippine lawmakers cut funding for two major railway projects in the proposed P6.793-trillion budget for 2026, citing sluggish construction and the need to divert resources to more urgent government programs.
The bicameral conference committee late Tuesday reduced the allocation for the 147-kilometer North-South Commuter Railway in the appropriations bill from P57.6 billion to P30.6 billion, based on a livestream budget presentation.
The joint congressional panel also reduced funding for the Metro Manila Subway Project from P39.2 billion to P22.2 billion.
The Department for Transport said the reallocation is “in line with the national government's immediate priorities to further promote economic growth and social equity”, according to the agency's letter sent to the Senate on 1 December.
“This adjustment will ensure more efficient use of available resources and provide a timely opportunity for existing resources to work where they are most needed,” it said.
Both railway systems are among the government's major infrastructure projects that have faced repeated delays due to right-of-way disputes.
The North-South Rail, which opened in 2019, is now scheduled for full operation by 2032, while the Metro Manila Subway, launched the same year, will begin partial service by 2032.
“Over the past five years, the average utilization of the North-South Commuter Railway is only 33%, and the Metro Manila Subway is only 36%,” Senator Sherwin T. Gatchalian, head of the Senate Finance Committee, told the joint congressional panel. “The utilization for both of these projects is very low.”
The repurposed funds, originally earmarked as the government's counterpart to project loans, will instead go into standby appropriations that can be used only if revenue collections exceed targets or if additional borrowings are secured.
Mr Gatchalian said the unprogrammed funding is likely to be released in the second quarter of next year.
“It could be used to fund the two projects that were mentioned,” he said.
cash assistance
Also on Tuesday, the bicameral conference committee agreed to increase funding for the government's cash assistance program for poor Filipinos in the budget bill from P59 billion to P63.9 billion.
Former Social Welfare Secretary, Senator Irwin T. Tulfo, said that the increase was necessary because funding for the Assistance to Persons in Crisis Situations (AICS) program typically runs out by the end of the year.
“There are always shortfalls in the AICS program and there are always requests for rapid response funds from the Department of Budget as October and November come,” he told the panel in a mix of English and Filipino.
AICS provides financial assistance to distressed individuals, including medical, burial, transportation, and educational assistance. – Kenneth Christian L. basilio
