Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 446, S. 95)
The main purpose is to provide guidelines on the acquisition and rental of motor vehicles by government agencies and to prescribe specifications for motor vehicles allowed to be purchased for government use.
Official government motor vehicles may be used by high-ranking officials including the President, Vice-President, Senate President, Speaker of the House, Chief Justice, Cabinet Secretaries, and other officials of equivalent ranks as specified under Section 34, General Provisions, FY 1995 General Appropriations Act.
Government funds cannot be used to purchase motor vehicles except for specific types like medical ambulances, military and police patrol vehicles, utility vehicles, road construction equipment, motorized bancas, and mass transport when necessary, with proper authorization from agency head and the Secretary of Budget and Management or specific high officials.
Rental of motor vehicles for continuous use is limited to 15 days unless extended with approval from the Secretary of Budget and Management.
The purchase of cars or sedans, passenger vans/wagons with fully imported chassis and body, pick-ups and four-wheel drive vehicles with fully imported chassis and body, aircrafts, and seacrafts require the President's approval.
In the Legislative and Judicial branches, vehicle purchases require approval by the Senate President, Speaker of the House of Representatives, or Chief Justice of the Supreme Court, respectively.
Vehicles may be replaced if they are at least 7 years old with 175,000 km for function cars and at least 5 years old with 150,000 km for utility vehicles, or earlier if declared unserviceable or if repair costs exceed 30% of the current new vehicle price over two years.
Requests must include a Motor Vehicles Inventory Form, certification of fund source and availability, detailed vehicle specifications and cost, and purpose or deployment details. Replacements must also include an Inventory and Inspection Report of Unserviceable Equipment.
An official is allowed only one official vehicle, except Cabinet Secretaries or equivalent who may have one backup vehicle for security personnel, subject to approval based on security needs.
Heads of Agencies may rent vehicles for up to 15 days for functions like agency official visits, conventions, emergency operations, or special tasks, with rentals exceeding 15 days requiring Secretary of Budget and Management approval.