Gov’t doubles DOTr budget to fast-track major railway projects

FIRST SUBWAY. Construction continues on the Metro Manila Subway, the Philippines’ first-ever underground rapid transit line, on Jan. 13, 2026. The Marcos administration is allocating more than PHP300 billion to the Department of Transportation in its 2027 national budget to boost funding for major railway projects. (PNA photo by Joan Bondoc)
FIRST SUBWAY. Construction continues on the Metro Manila Subway, the Philippines’ first-ever underground rapid transit line, on Jan. 13, 2026. The Marcos administration is allocating more than PHP300 billion to the Department of Transportation in its 2027 national budget to boost funding for major railway projects. (PNA photo by Joan Bondoc)
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The proposed budget of the Department of Transportation (DOTr) will more than double to PHP300.96 billion in 2027, with the government sharply increasing funding for major railway projects.

In a statement Tuesday, the Department of Budget and Management (DBM) said the proposed allocation is PHP163.11 billion, or 118.33 percent higher than the DOTr’s PHP137.85 billion budget under the 2026 General Appropriations Act (GAA).

President Ferdinand R. Marcos Jr. said the increased investment reflects the administration’s push for faster, safer, and more reliable public transportation.

"An efficient transportation system is essential to a productive economy. Faster, safer, and more reliable mobility reduces the cost of doing business, improves the quality of life of commuters, and connects Filipinos to greater opportunities,” Marcos said in his 2027 budget message to Congress.

At the center of the proposed increase is the Rail Transport Program, which will receive PHP197.30 billion, up from the PHP55.34 billion provided under the 2026 GAA

Nearly 97 percent of the proposed rail budget will go to the North-South Commuter Railway (NSCR) System and Phase I of the Metro Manila Subway Project (MMSP).

The NSCR will receive PHP123.84 billion, while PHP67.44 billion is earmarked for the Metro Manila Subway, for a combined PHP191.28 billion.

The NSCR is envisioned as a transport backbone linking Metro Manila with economic centers in Central Luzon and Calabarzon. Its Tutuban-Malolos segment is projected to serve more than 300,000 passengers daily during its opening year and reduce travel time between the two points to about 35 minutes.

The Metro Manila Subway, meanwhile, will receive more than triple its 2026 GAA allocation of PHP20.39 billion. The country’s first underground urban railway is planned to span 33 km. with 17 stations, and connect with other major rail systems in Metro Manila.

Other railway projects will also receive additional funding, with the LRT Line 1 Cavite Extension Project set to receive PHP1.17 billion, up from PHP799.64 million in 2026, while the MRT Line 3 Rehabilitation Project gets PHP1.94 billion, nearly four times its PHP500 million allocation this year.

The DBM said the proposed DOTr budget reflects the administration's broader transportation investment program, with funding prioritized according to fiscal space, implementation readiness, project maturity, and expected outcomes, among other considerations.

Several transportation programs, including the NCR Busway Project, Service Contracting Program, and Fuel Subsidy Program, do not have separate proposed appropriations under the 2027 NEP.

The proposed DOTr allocation forms part of the government-wide PHP1.46 trillion infrastructure program for 2027, which is PHP178 billion, or 13.8 percent, higher than the PHP1.29 trillion provided under the 2026 GAA.

The proposed PHP7.2 trillion national budget for 2027 is currently undergoing committee-level hearings and deliberations at the House of Representatives. (PNA)

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