Gov't to pay CARS program obligations using DPWH savings—DBM

The government will pay what it owes under the Comprehensive Automotive Resurgence Strategy (CARS) program using unused funds from the Department of Public Works and Highways (DPWH) for 2025, the Department of Budget and Management (DBM) said on Monday.

The DBM said these savings can be used to cover delayed government support promised to car manufacturers and auto parts makers that joined the program, including Toyota and Mitsubishi.

“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,” the DBM said.

According to the DBM, the government already has enough basis to release the payments because the required TPCs have been issued and verified.

The payments will come from available government savings this year and will still need approval from the Office of the President, as well as compliance with existing budget and legal rules.

This move comes after President Ferdinand “Bongbong” Marcos Jr. signed the P6.793-trillion national budget for 2026 earlier this month but vetoed nearly P92.5 billion worth of unprogrammed funds, including P4.32 billion that was supposed to go to the CARS program.

The CARS program was created to encourage car manufacturing in the Philippines by attracting investments, boosting demand, and strengthening industry rules, with the goal of making the country a regional auto manufacturing hub.

DBM Secretary Rolando Toledo said the government remains committed to supporting the auto industry and will not walk away from its obligations.

“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,” he said.

“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,” he added.

For obligations that are not yet covered by the current budget, the government may include them in the proposed 2027 national budget, depending on available cash, Toledo said.

On Friday, Finance Secretary Frederick Go declared that the government has found a solution to fund the CARS program, assuring car manufacturers that the government will honor its commitments.

“After the much chatter on the vetoed funding of the CARS program, the government finalized a funding solution for the CARS program, and therefore, car manufacturers enrolled in the program can now be assured that the government will fulfill its commitment to investors,” he said.—MCG, GMA Integrated News