A zombie budget: Skewed priorities in DoTr's 2027 budget proposal

The Department of Transportation's (DoTr) proposed P251.93-billion budget for 2027 is a rehash of past submissions — a 'zombie budget' that recycles old projects without addressing urgent national transport priorities. Despite the Philippines' archipelagic geography, high logistics costs, and a sclerotic public transport system relied upon by millions across 1,600 local government units (LGUs), the DoTr continues to push a mismatched expenditure plan that risks wasting scarce public funds. The DoTr is seeking Congress' imprimatur on P251.93-billion capital expenditure plan, the bulk of which will go to the following programs: • Rail Transport – P197,301,945; 82% • Aviation Infrastructure – P5,811,688; 2% • Maritime Infrastructure – P18,137,403; 8% • Motor Vehicle Regulatory – P3,236,918,000; 1% • Land Transport; P16,525,543; 7% For a total of P241,013,497; 100% This skewed distribution reflects an obsession with railways at the expense of immediate, nationwide transport needs. Eight pesos out of 10 go to rail projects that won't move a single commuter until after 2030! THE MISMATCH: RAILWAY OBSESSION • Long Gestation Projects: Most railway initiatives will not benefit commuters until after 2030. The Metro Manila Subway, for instance, is projected to come on stream only by 2033. • Costly Feasibility Studies: P2.14 billion is earmarked for studies — 93% funded by loans — for projects unlikely to materialize within five years. • Idle Assets: 39 Dalian railcars purchased in 2016 remain unused, even though deploying them could boost MRT-3 capacity by 33% within a year. If nine had been fielded, why not the remaining 39? Congress must ask: why prioritize distant projects while ignoring immediate solutions? NEGLECT OF PUBLIC TRANSPORT • Public Transport Modernization Program (PTMP): Once touted as a flagship reform, the PTMP is now starved of funds — only P176.8 million proposed for a fleet of 150,000 buses and jeepneys. Loan defaults have ballooned to P5.1 billion, choking further modernization. • Cebu BRT Project: After a decade, only 2.6 km of the planned 20 km route has been completed. With the loan window terminated in January 2026, the DoTr still requests P175.49 billion for 2027 for a loan that no longer exist. It managed to spend 30% of the original $116-million loan for less than 10% completion. These failures highlight systemic mismanagement and demand mid-course corrections. STRANGE FUNDING: LTO'S LEGACY SYSTEM • Stradcom Payments: P890.78 million is proposed for 2027, despite the Ombudsman's May 29, 2026 order discontinuing the P169 fee per motor vehicle. • Expired Build-Own-Operate (BOO) Contract: Stradcom's contract, signed in 1998, expired in 2013. Continuing payments is legally dubious, especially since the Land Transportation Management System or LTMS replacement system has been operational for three years at no cost to vehicle owners. Congress must not be complicit in perpetuating illegal collections. At minimum, payments should be conditional on legal resolution; ideally, refunds should be ordered to vehicle owners. GIVING BIKEWAYS A BAD RAP The DoTr proposes P33.9 million for active transport. A small amount but nonetheless a case of 'throwing good money after bad.' Billions spent since 2020 produced failed bikeways on Commonwealth, EDSA, E. Rodriguez, and C-5 — now abandoned. Cities like Marikina and Iloilo have shown that LGUs, not the DoTr, are best positioned to deliver effective bikeway infrastructure. SUMMARY The 2027 DoTr budget reflects inertia, not innovation. Legacy programs with poor outcomes continue to drain resources, while strategic national initiatives — like PTMP and logistics cost reduction — remain neglected. Congress must assert its constitutional mandate to realign public spending toward projects with national impact, immediate relief, and transparent outcomes. Key priorities for reallocation: • Logistics Costs: Study and reduce transport costs of essential commodities (e.g., rice) across the nine major islands. • Urban Rail Relief: Allocate funds to deploy the idle Dalian railcars and procure trains for LRT-2, which now operates only 10 trains compared to 18 in 2003. • Public Transport Modernization: Rescue PTMP with realistic financing and regulatory reforms. • Accountability: Halt dubious payments to Stradcom and redirect funds to systems already in place. It should instead allocate P2.5 billion for the O&M and nationwide roll-out of LTMS, for an online transaction beneficial to the public. Congress must stop funding inertia and start funding relief. Rene S. Santiago is an infrastructure and transportation development specialist with a Bachelor of Science in Civil Engineering and a Master of Engineering degree and over 50 years of professional experience. He is a member of the Foundation for Economic Freedom (FEF), a fellow of the Philippine Institute of Civil Engineers (PICE), and a past president of the Transportation Science Society of the Philippines (TSSP). The views expressed here do not necessarily reflect the official positions of FEF, PICE, or the TSSP.