DBM: ‘Libreng Sakay’ is ‘Congress-introduced’, not part of gov’t’s regular program

MANILA, Philippines — The Department of Budget and Management (DBM) on Thursday clarified that the “Libreng Sakay” scheme, or formally the service contracting program (SCP), is not part of the government’s regular plans and therefore not included in the National Expenditures Program (NEP).

The DBM explained that the SCP of the Department of Transportation (DOTr) was a non-recurring or a one-time expenditure item and so it is not a regular project of the government. It noted that the program was only introduced by the 18th Congress that deliberated on the 2022 national budget and was not included in the 2022 NEP submitted by the budget agency.

Similarly, the DBM added they did not include the SCP or Libreng Sakay scheme in the NEP for 2023. The DBM said it is letting Congress decide on the funding of the program.

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Under the SCP, mass transportation units from private companies are tapped to give free rides to the public.

“The Service Contracting Program (SCP) is a non-recurring or one-time expenditure item. It is not a regular program. Hence, similar to previous years, no funds were allocated for it under the 2023 National Expenditure Program (NEP),” the DBM said in a statement.

“Allow us to note further that the inclusion of the SCP in the FY 2022 General Appropriation Act (GAA) is Congress-introduced. Hence, we will defer to the wisdom of our honorable lawmakers the decision on whether or not to allot appropriations for the said program,” they added.

Likewise, the DBM said the SCP was only implemented to aid workers and commuters affected economically by the COVID-19 pandemic, and eventually, the rising prices of oil products.

It noted that oil prices are expected to stabilize in 2023.

“It is important to note that the SCP was originally implemented by the DOTr at the height of the COVID-19 pandemic to provide assistance to the road transport sector badly hit by the pandemic. This year, it was intended to mitigate the impact of the fuel surge. We expect oil prices to stabilize next year,” the DBM explained.

“We shall likewise defer to the direction of the Department of Finance (DOF) as to policies concerning the sustainability and continuation of programs related to financial assistance,” it added.

The DBM’s statement comes after DOTr Undersecretary Mark Steven Pastor asked the House of Representatives committee on transportation for help regarding their budget allocation for 2023, as more funds would be needed to sustain the Libreng Sakay program.

Pastor said during the committee hearing on Thursday that they requested P12 billion to fund the scheme in 2023, but it was not included in the DBM’s proposed NEP for next year. The DBM submitted its 2023 NEP proposal to the House of Representatives on Monday, August 22.

Pastor made this request after former Metropolitan Manila Development Authority general manager and now Rizal 3rd District Rep. Jojo Garcia asked whether the government can no longer implement the free ride program.

“So by next year wala nang libreng sakay? (So there won’t be any free ride next year?)” Garcia asked.

“We requested P12 billion po for 2023 budget, however hindi po siya naisama sa National Expenditures Program, we are appealing of course to our legislative branch of government kung maaari pong ma-pondohan pa rin po itong ating service contracting upang next year po ay magkaroon pa rin ng pondo para sa Libreng Sakay,” Pastor replied.

READ: Libreng Sakay: Bus drivers buried in debt unsure about payment

The free ride program of the government has been a big help for commuters especially amid rising prices of fuel products and basic commodities.

READ: ‘Libreng Sakay’ program seen as unsustainable

READ: ‘Libreng Sakay’: Gov’t told good intentions are sometimes bad

But many groups have questioned the sustainability of the Libreng Sakay program, saying that problems hounding public transport modes must be addressed instead than providing a temporary treatment or a stop-gap measure.

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