MRT subsidy, fare hike to push through

MANILA, Philippines - The government will continue subsidizing millions of passengers using the Metro Rail Transit line along EDSA, but the MRT fare hike will still push through, Transportation and Communications Secretary Manuel Roxas II said.

He told a House budget hearing that the government would subsidize MRT passengers in 2013 to the tune of P5.1 billion, which represents a reduction of more than P2 billion from previous years’ subsidy fund.

Roxas pointed out that next year’s P5.1-billion subsidy would not be enough to operate and maintain the MRT and pay for billions in loans incurred for its construction. He said fares would have to go up. “We are thinking that the MRT fare would approximate the minimum fare for a bus ride along EDSA,” he said.

He said the government originally planned to increase MRT fares in January this year “but President Aquino ordered us to defer it.” He said Malacañang is using savings to augment this year’s subsidy. 

He said the mandate to cut the amount of taxpayers’ money being spent for MRT passengers came from Congress last year. Lawmakers felt that it was unfair for people in the provinces to be subsidizing MRT riders in Metro Manila.

The reduction from the previous years’ subsidy fund of more than P7 billion was used for infrastructure projects in the provinces, he added.