MANILA — This is to respectfully address misconceptions and misinformation circulating online and within the automotive industry regarding the veto of the Comprehensive Automotive Resurgence Strategy (CARS) Program item in the FY 2026 General Appropriations Act (GAA).

 

The Department of Budget and Management, Department of Trade and Indiustry, and the Department of Finance clarified that the veto does not reflect a withdrawal of government support for the auto industry, as existing budgetary items under the programmed appropriations of the FY 2025 GAA remain available to ensure the orderly, lawful, and fiscally responsible settlement of valid obligations under the CARS Program—consistent with the administration’s clear and continuing policy that the Philippine automotive industry remains a national priority.

 

Under the FY 2025 GAA, there are two relevant budgetary items: (1) the operating requirements of the Project Management Office of the CARS Program, and the (2) Fiscal Support Arrearages for the CARS Program. While the fiscal support arrearages item is no longer included in the FY 2026 GAA, the government retains the ability to settle validated obligations through the augmentation of the existing fiscal support arrearages line item under the DTI-BOI Budget in the FY 2025 GAA from the FY 2025 declared and verified savings of the Department of Public Works and Highways, in accordance with the Constitution, existing laws, applicable budgetary rules and regulations, and the approval of the President.

 

Based on the Tax Payment Certificates (TPCs) already issued and validated, the government has the capacity to settle dues to participating car manufacturers, including Toyota and Mitsubishi, as well as eligible autoparts makers. These payments will be supported by available FY 2025 savings, subject to the approval of the Office of the President and compliance with all applicable fiscal and legal requirements.

 

It was further clarified that any remaining validated requirements that have not yet been issued TPCs, and are not covered under the current GAA, may be considered for inclusion in the proposed FY 2027 National Expenditure Program (NEP). Should these be included in the FY 2027 NEP, they will be subjected to cash programming to ensure the orderly, continuous, and fiscally responsible settlement of government obligations, consistent with available fiscal space.

 

The DBM, DTI, and DOF emphasized that this approach reflects a careful balance between supporting the auto industry, upholding due process, and ensuring responsible stewardship of public funds.

 

“The government’s position is clear: we will not abandon the auto industry. Obligations supported by issued and validated TPCs will be paid in a legal, orderly, and responsible manner, consistent with our fiscal space and established budgetary rules,” said DBM Secretary Rolly U. Toledo.

 

Secretary Toledo added that the DBM remains committed to ensuring that fund releases are anchored on clear legal bases, proper timing, and sound fiscal direction, in order to maintain the confidence of both the private sector and the public.

 

Meanwhile, DTI Secretary Cristina A. Roque underscored the importance of sustained collaboration between government and automotive manufacturers and investors.

 

“The government recognizes the automotive industry’s vital role in job creation, technology development, and industrial growth. We are committed to ensuring that the incentives under the CARS Program continue to encourage investors to do business in the Philippines. The industry can expect continued partnership to ensure that the program is implemented in line with its intended objectives,” Roque said.

 

Finance Secretary Frederick D. Go, former Special Assistant to the President on Investments and Economic Affairs, reaffirmed the administration’s commitment to honoring its obligations under the CARS Program.

 

“President Ferdinand R. Marcos, Jr. has given clear direction that the government must honor the commitments it made to investors who placed their trust in the Philippines. The CARS Program is a key pillar of our strategy to strengthen local manufacturing, and we will ensure that legitimate obligations are paid—consistent with the law and within the capacity of public funds,” Secretary Go said.

 

“Our message to the auto industry is clear: do not worry—you remain part of the government’s long-term plan for industrial development, jobs creation, and economic growth,” he added.

 

The agencies also clarified that the validation of TPCs remains ongoing, with the DTI continuing to ensure that all claims are accurate, complete, and compliant with program guidelines prior to any fund release.

 

Overall, the DBM, DTI, and DOF reiterated that the government remains open to dialogue and firmly committed to practical, lawful, and fiscally responsible solutions that support the auto industry while safeguarding public interest.

 

“We will ensure that the government maintains a clear and responsible course in settling obligations and supporting the auto industry, always in accordance with the law and the capacity of public funds,” Secretary Toledo concluded.

 

 

19 January 2026

 

 

MANILA — Nais bigyang linaw ng pamahalaan ang mga maling impormasyon at haka-haka na kumakalat online at sa loob ng automotive industry kaugnay ng pag-veto sa Comprehensive Automotive Resurgence Strategy (CARS) Program sa FY 2026 General Appropriations Act (GAA).

 

Ipinaliwanag ng Department of Budget and Management (DBM), Department of Trade and Industry (DTI), at Department of Finance (DOF) na ang veto ay hindi nangangahulugang tinalikuran na ng gobyerno ang auto industry. Mayroon pa ring umiiral na mga budget item sa ilalim ng programmed appropriations ng FY 2025 GAA na maaaring gamitin upang matiyak ang maayos, legal, at responsableng pagbayad ng mga valid na obligasyon sa ilalim ng CARS Program. Ito ay alinsunod sa malinaw at tuloy-tuloy na polisiya ng administrasyon na panatilihing prayoridad pa rin ng bansa ang automotive industry.

 

Sa FY 2025 GAA, may dalawang kaugnay na budget item: (1) ang operating requirements ng Project Management Office ng CARS Program; at (2) ang Fiscal Support Arrearages para sa CARS Program.

 

Bagama’t wala na ang fiscal support arrearages item sa FY 2026 GAA, may kakayahan pa rin ang gobyerno na bayaran ang mga napatunayang obligasyon sa pamamagitan ng augmentation ng umiiral na fiscal support arrearages line item sa ilalim ng DTI-BOI Budget sa FY 2025 GAA. Ang pondong gagamitin dito ay magmumula sa FY 2025 declared and verified savings ng Department of Public Works and Highways, alinsunod sa Konstitusyon, umiiral na mga batas, mga budgetary rules and regulations, at pahintulot ng Pangulo.

 

Batay sa mga Tax Payment Certificates (TPCs) na naibigay at napatunayan na, may kakayahan ang gobyerno na bayaran ang mga obligasyon sa mga kasaling car manufacturers tulad ng Toyota at Mitsubishi, pati na rin sa mga kwalipikadong autoparts makers. Ang mga bayad na ito ay manggagaling sa available FY 2025 savings at daraan sa pag-apruba ng Office of the President, at susunod sa lahat ng kinakailangang legal at fiscal na patakaran.

 

Nilinaw rin na ang mga napatunayang obligasyon na wala pang TPCs at hindi saklaw ng kasalukuyang GAA ay maaaring ikonsidera para maisama sa panukalang FY 2027 National Expenditure Program (NEP). Kapag naisama sa FY 2027 NEP, daraan ang mga ito sa cash programming upang masigurong tuloy-tuloy, maayos, at responsable ang pagbayad, base sa kakayahan ng pondo ng gobyerno.

 

Binigyang-diin ng DBM, DTI, at DOF na ang ganitong hakbang ay nagpapakita ng balanseng paglapit—tulong sa auto industry, pagsunod sa tamang proseso, at maingat na paggamit ng pondo ng bayan.

 

“Malinaw ang posisyon ng gobyerno: hindi namin pababayaan ang auto industry. Ang mga obligasyong may naibigay at napatunayang TPCs ay babayaran sa legal, maayos, at responsableng paraan, alinsunod sa budget rules at kakayahan ng pondo ng gobyerno,” ayon kay DBM Secretary Rolly U. Toledo.

 

Dagdag pa ni Secretary Toledo, nananatiling tapat ang DBM sa pagtiyak na ang paglalabas ng pondo ay may malinaw na legal na basehan, tamang timing, at maayos na fiscal direction upang mapanatili ang tiwala ng private sector at ng publiko.

 

Samantala, binigyang-diin ni DTI Secretary Cristina A. Roque ang kahalagahan ng tuloy-tuloy na pagtutulungan ng gobyerno at ng mga automotive manufacturers at investors.

 

“Kinikilala ng gobyerno ang mahalagang papel ng automotive industry sa trabaho, teknolohiya, at paglago ng industriya. Patuloy naming sisiguraduhin na ang mga insentibo sa ilalim ng CARS Program ay maghihikayat pa rin ng mga investor na magnegosyo sa Pilipinas,” ani Roque.

 

Ipinunto naman ni Finance Secretary Frederick D. Go, dating Special Assistant to the President on Investments and Economic Affairs, na malinaw ang direktiba ng Pangulo na tuparin ang mga pangako ng gobyerno.

 

“Malinaw ang utos ni Pangulong Ferdinand R. Marcos, Jr.: dapat igalang ng gobyerno ang mga pangakong ginawa nito sa mga investor na nagtiwala sa Pilipinas. Ang CARS Program ay mahalagang bahagi ng plano para palakasin ang local manufacturing, at sisiguraduhin naming mababayaran ang mga lehitimong obligasyon—ayon sa batas at sa kakayahan ng pondo ng gobyerno,” ani Secretary Go.

 

Dagdag pa niya: “Malinaw ang mensahe namin sa auto industry: huwag kayong mag-alala—kayo ay nananatiling bahagi ng pangmatagalang plano ng gobyerno para sa pagpapalago ng industriya, paglikha ng mga trabaho, at pagpapalakas ng ekonomiya.”

 

Nilinaw rin ng mga ahensya na tuloy-tuloy ang validation ng TPCs, at patuloy na tinitiyak ng DTI na ang lahat ng claims ay tama, kumpleto, at sumusunod sa patakaran ng programa bago maglabas ng anumang pondo.

 

Sa kabuuan, muling tiniyak ng DBM, DTI, at DOF na bukas ang gobyerno sa dayalogo at nananatiling committed sa mga praktikal, legal, at responsable na solusyon para suportahan ang auto industry habang pinoprotektahan ang interes ng publiko.

 

“Sisiguraduhin ng gobyerno na malinaw at responsable ang direksyon nito sa pagbayad ng obligasyon at sa patuloy na suporta sa auto industry—laging ayon sa batas at sa kakayahan ng pondo ng bayan,” pagtatapos ni Secretary Toledo.