Manila: 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.
According to Philippines News Agency, the Department of Budget and Management (DBM) announced that 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. stated that the increased investment reflects the administration's commitment to enhancing public transportation efficiency, safety, and reliability. "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 remarked in his 2027 budget message to Congress.
Central to the proposed increase is the Rail Transport Program, which will receive PHP197.30 billion, a significant rise from the PHP55.34 billion allocated under the 2026 GAA. Nearly 97 percent of the proposed rail budget is designated for the North-South Commuter Railway (NSCR) System and Phase I of the Metro Manila Subway Project (MMSP).
The NSCR is set to receive PHP123.84 billion, while PHP67.44 billion is earmarked for the Metro Manila Subway, totaling PHP191.28 billion combined. The NSCR aims to serve as a transport backbone linking Metro Manila with economic hubs in Central Luzon and Calabarzon. Its Tutuban-Malolos segment is expected to accommodate over 300,000 passengers daily upon its opening, significantly reducing travel time between the two points to approximately 35 minutes.
The Metro Manila Subway, the country's first underground urban railway, will receive more than triple its 2026 GAA allocation of PHP20.39 billion. The subway is planned to span 33 kilometers with 17 stations and will integrate with other major rail systems in Metro Manila.
Other railway projects will also see increased funding. The LRT Line 1 Cavite Extension Project is set to receive PHP1.17 billion, up from PHP799.64 million in 2026, while the MRT Line 3 Rehabilitation Project is allocated PHP1.94 billion, nearly four times its PHP500 million allocation this year.
The DBM emphasized that the proposed DOTr budget aligns with the administration's broader transportation investment program, prioritizing funding based on factors such as fiscal space, implementation readiness, project maturity, and expected outcomes.
Several transportation programs, such as the NCR Busway Project, Service Contracting Program, and Fuel Subsidy Program, lack separate proposed appropriations under the 2027 NEP. The proposed DOTr allocation is 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.
