by Nicasio Angelo Agustin
Should the LRT, MRT fares in Metro Manila be increased?
This question doesn’t seem so fit for people in Mindanao to answer as they do not benefit so much from the LRT and MRT operations. Yet, in Metro Manila, commuters oppose the imposition of fare increase. The last time the fare was increased was way back in 2002.
President Aquino and DOTC secretary Mar Roxas said the government can no longer continue subsidizing LRT and MRT operations at a cost of P50 per passenger; and that the “time is now ripe” for the fare increase. The use of the term “subsidy” makes the issue relevant to all tax-paying Filipinos whether they are in Metro Manila or elsewhere.
There are two sides of the coin on this one: (1) that it is wrong for taxpayers outside of Metro Manila to subsidize the LRT and MRT operations; (2) that Metro Manila contributes the largest portion in tax collections; hence it deserves to also get the biggest share of the budget. Then, the issue on regional allocation of the national budget becomes vital to clarify or at least, be a subject of discussion with the intention of promoting social and geographic equity.
Those who support the argument that subsidies should be continued further contend that a fare increase is detrimental to the urban poor. Money spent for additional fare could go to basic household needs. While it is true that subsidies are essential in the light of distributive and allocative justice, my thinking is that there are more poorer outside of Metro Manila who need assistance from the government. Statistics show that majority of the people who are considered poor are in rural areas. Local governments are left to address the pressing concerns of their impoverished constituents. Though they receive their internal revenue allotment – their share of the national budget pie–this is more often than not too meager to allow them to deal with the basic human needs of their people. Some other forms of assistance from the national government come only in trickles.
Then, the argument that since Metro Manila contributes the largest amount in tax revenues and therefore it should also get the biggest share of the budget is a bit faulty. A huge amount of taxes are indeed collected from companies and businesses whose headquarters are based in Metro Manila but whose operations and production processes are located in the provinces and other cities. To claim that these revenues come from Metro Manila alone is a big injustice to host provinces, cities and communities who bear the brunt of business operation nuisances.
Regional allocation of the national budget and the provision of subsidies should therefore be made to create opportunities for other sectors and regions to grow. From what I have observed, it seems to me that those who have more get more. Then, we can only anticipate that the growth disparity among regions will certainly widen. Too much pouring out of resources into big cities and the metropolis will result to further influx of people from the provinces which create more demands for services and economic opportunities, which in turn would require more attention and funding support from the government.
What I would like to see is for the poorer regions to get more so that they can catch up in development. Then people won’t need to go to the metropolis or other big cities to seek employment opportunities. This is a way of will decongesting the metropolis and easing traffic congestion and inadequate public transportation thereat.
Should the LRT and MRT fare be increased, the insinuation is that the amount which would otherwise be used for subsidy could then be channeled to fund development projects in other regions. Fair enough for non-Metro Manila residents!
Yet, development projects do not come in silver platters. Proponents are required to justify the need for a project. The challenge then is for local development key actors – local governments and local business groups – to start building their capacities to compete for the resources available from the national coffers and to use them judiciously and efficiently. Otherwise, their constituents will forever be pleading and begging for assistance from the national government just like Metro Manila’s.
Feel free to send comments to nic_agustin@yahoo.com.
