LRTA remits P277 million interest income to Treasury

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February 16, 2026 | 12:00am

MANILA, Philippines — The state-run operator of the Light Rail Transit Line 2 (LRT-2) has remitted nearly P277 million in interest income to the Bureau of the Treasury, taken from deposits for expansion projects.

In a statement, the Light Rail Transit Authority (LRTA) said it has turned over P276.71 million in interest income to the Treasury in compliance with an order from the Department of Finance (DOF).

The remittance represents the interest the LRTA earned from the deposit of funds allocated for its rehabilitation projects and the extension of the Light Rail Transit Line 1 (LRT-1).

Under the DOF’s
Department Circular 002-2022, all state-run firms must remit interest earnings they made from depositing funds in banks. They must be turned over within five days at the end of each quarter, upon project completion or upon maturity of investment, whichever comes first.

The circular aims to handle government cash better and promote transparency in public finances. The LRTA vowed to comply with the circular to uphold proper fund management, especially as it is receiving budgetary allocation for certain projects.

For clarity, the interest income remitted by the LRTA to the Treasury is different from dividends that state-owned entities are also required to submit annually.

Under Republic Act 7656, or the Dividends Law, government-owned and controlled corporations (GOCCs) must remit 50 percent of their profit to the Treasury to support public expenditures.

Moreover, while the LRTA is classified as a GOCC, it acts as an extension of the government, as it is vested with corporate powers in managing a public good.

Further, the LRTA is struggling to come out of its own financial difficulty, with its deficit going up by 61 percent to P925.29 million last year. For one, fare collection from the LRT-2 dipped by two percent to P1.25 billion on free rides and grant of higher discounts.

Likewise, LRTA’s operating expenses ballooned by 18 percent to P2.18 billion. The agency said it had to raise spending to procure spare parts and undertake maintenance activities, ensuring the LRT’s operational reliability.