Unused DPWH funds to settle CARS dues

The government will lean on unused funds from the Department of Public Works and Highways (DPWH) and savings from last year’s national budget to settle its obligations to investors under the recently vetoed automotive incentive program.

- BY DEXTER BARRO II

Department of Trade and Industry (DTI) Secretary Cristina Roque said the government will use these existing funds to cover the entire P4.32-billion budget for the fiscal support arrearages of the Comprehensive Automotive Resurgence Strategy (CARS) program.

"If investors know that the incentives are really being granted to them, and they are that substantial, then of course they would want to invest in the Philippines," said Roque in a chance interview.

The government aims to settle the validated obligations through the existing support arrearages line item under the 2025 General Appropriations Act (GAA).

Under last year’s national budget, the CARS program was ₱87.97 million for fiscal support arrearages, alongside ₱1.47 million for its operating requirements.

In addition, the government will also tap "declared and verified savings" from the DPWH's budget last year, which posted a surplus largely due to corruption in flood control projects.

These funding sources will still be approved by President Ferdinand "Bongbong" Marcos Jr., in accordance with existing laws and applicable budgetary rules and regulations.

It was Marcos himself who vetoed the ₱4.32-billion budget for the CARS program in this year's national budget, which was supposed to fulfill the entire remaining obligations of the program.