Manila, Philippines- Amid the inevitable increase in fares, the Department of Budget and Management (DBM) has raised the subsidy of Metro Rail Transit (MRT) for next year by P2.18 billion.

Budget and Management Secretary Florencio B. Abad, said the 2011 subsidy allocation of P7.3 billion from P5.12 billion this year will effectively increase the government subsidy per passenger to P47.77 from P45.

But still, Abad said the government plans to align the MRT fares with the cost of riding an air-conditioned bus, which is between P20 to P25.

“The high subsidy of MRT really calls for some rationalization,” Abad told lawmakers at the House Appropriations Committee Budget Hearing late Wednesday.

Data from the Department of Transportation and Communications (DoTC) showed that about 414,000 commuters ride the MRT on a daily basis.

The increase in MRT subsidy is reflected in the budget of the DoTC for next year, which would climb by 88.4 percent to P32.4 billion from P17.2 billion this year. DoTC Undersecretary Dante Velasco earlier assured Metro Manila commuters that the planned fare hike at the MRT will be minimal.

Velasco said that aside from hiking MRT fares, another possible source of funds would be to collect advertising income from the MRT.