Build Better More gets ₧1.4-T 2024 budget, 5.3% of GDP

By Cai U. Ordinario @caiordinario

T he government has also proposed P40.6 billion for social infrastructure projects such as public school buildings and another P15.3 billion for public hospitals and health centers.

“ This Program, which seeks to continue and expand the Golden Age of Infrastructure of the country, will receive a total of P1.418 trillion. This is equivalent to 5.3 percent of GDP, well within the DBCC (Development Budget Coordination Committee) target of 5 to 6 percent,” the President’s Budget Message read.

T he bulk of the funding (P801.2 billion) will be allocated to the Department of Public Works and Highways (DPWH) and the Depart - ment of Transportation (DOTr), at P176.4 billion.

T he list of projects to be financed will include the 194 high-impact infrastructure flagship projects (IFPs) approved by the National Economic and Development Authority (Neda) Board.

T hese projects include those on public transport, power, health, information technology, water resources, and agriculture. The government noted that 123 of these projects were initiated by the current administration.

T hese projects include the North-South Commuter Railway System and the Metro Manila Subway Project Phase I under the Rail Transport Program; the Land Pub - lic Transportation Program; and the Aviation and Maritime Infrastructure Programs of the DOTr. These will be complemented by the transportation-related projects of the DPWH.

T he budget of DPWH aims to construct, maintain and rehabilitate roads and bridges nationwide. A total of P148.1 billion will fund the Network Development Program, which will be used to construct 721.656 kilometers of new roads and widen or improve 647.288 kilometers of existing roads.

T he DPWH’s Asset Preservation Program will also receive P115.6 billion to implement preventive maintenance of 1,196.398 kilometers of roads and upgrade of 789.711 kilometers of damaged paved roads.

T he Bridge Program will receive P45.8 billion for the construction of 15,208.83 lineal meters of bridges and maintenance, retrofitting, repair, rehabilitation, as well as the widening of 525 existing bridges.

For the DOTr, the government said this includes the proposed funding for mass transport systems; rail transport; land public transport; aviation; maritime; tourism and travel; and digital infrastructure projects.

I n terms of mass transport, the government has doubled the budget to P214.3 billion for 2024 from P106 billion in 2023. This is in recognition of the “urgent need” to reduce road congestion.

T he government allocated 76.4 percent of the DOTr budget to rail transport. This includes the development of the North-South Commuter Railway System worth P76.3 billion, which will connect New Clark City in Capas, Tarlac to Calamba, Laguna and the Metro Manila Subway Project Phase I worth P68.4 billion, which will consist of 15 stations from Valenzuela City to Pasay City.

T he list of projects also includes the LRT Line 1 Cavite Extension Project worth P4.7 billion, which aims to add 1 kilometer to the existing railway system; Philippine National Railways South Long Haul Project worth P3.1 billion, which will reconstruct the PNR South Main Line; and the MRT 3 Rehabilitation Project worth P2.9 billion.

T he authors of the bill said environmental risks or health hazards, or emissions from coal use as a result of combustion, include a substantial contribution to acid rain, smog, and haze that result in respiratory illnesses and lung disease among youngsters and old alike.

T hey added that about 65 percent of the country’s power needs are derived from coal use, which is why several lawmakers have been pushing for the approval of such a bill to accelerate investments, where domestic incentives can entice foreign investors, or LNG players, to come in.

House Committee on Ways and Means Chairman Joey Sarte Salceda said the tax provision of the bill seeks to accelerate investments shifting the country’s power supply away from coal generation.

S alceda, a principal author of the measure, said he wrote the tax provisions and key economic portions of the bill, including tax incentives to encourage immediate infrastructure investments in the liquefied natural gas (LNG) sector. This will expedite the shift away from coal. Right now, we rely on coal for 65 percent of our electricity needs. It’s cheap and base-loadable. Renewable energy is slowly getting there. But we need emissions reduction now. LNG is that transitional fuel that reduces emissions while providing baseload power,” Salceda said.

S alceda added that “because we have proven reserves of Natural Gas in the West Philippine Sea, LNG also has the potential to bring us more energy independence.”