Republic of the Philippines

DEPARTMENT OF FINANCE
Roxas Boulevard Corner Pablo Ocampo, Sr. Street
Manila 1004

August 26, 2016

MEMORANDUM

FOR

Heads of Groups/Offices
This Department
Bureaus and Attached Agencies

FROM

SUBJECT

REVISED

GUIDELINES

ON

THE ACQUISITION

AND

USE OF GOVERNMENT

MOTOR VEHICLES

As part of the advocacy of the present Administration to be more prudent in the use of
government funds, attached herewith for guidance and strict compliance is Budget Circular No. 2016-5
dated August 22, 2016, prescribing "Revised Guidelines On The Acquisition And Use Of Government
Motor Vehicles" .

~.

DEPARTMENT OF FINANCE

Republic ot thl Phlllpplnu

!IIIIIIIIIIIIIII ~11~lllmJ~~I.W

REPUBLIC OF THE PHILIPPINES

DEPARTMENT Of' BUDGET AND MANAGEMENT
GEN. SOLANO ST., SAN MIGUEL, MANILA

BUDGET CIRCULAR

No. 2016 - 5
Date: August 22, 2016

TO

ALL HEADS OF DEPARTMENTS,

AGENCIES, COMMISSIONS,
STATE
UNIVERSITIES
AND COLLEGES,
GOVERNMENTOWNED
AND/OR -CONTROLLED
CORPORA TIONS, LOCAL
GOVERNMENT UNITS AND ALL OTHERS CONCERNED

SUBJECT

REVISED GUIDELINES ON THE ACQUISITION

GOVERNMENT MOTOR VEHICLES

1.0

AND USE OF

Background
The present Administration has vowed to be more prudent in the use of public funds.
As part of this advocacy, the government should.set rid o.f. and l!:fJstail1from using
luxury motor vehicles and make use of transport units with common and simple
specifications.

2.0

Purpose
This Circular is being issued to update the Typology of Government Motor Vehicles
and the Motor Vehicle Classification and Specifications Guide, which are indicated
under Annexes Band C of Budget Circular No. 2010-021 dated March 01, 2010, to
ensure consistency with the Government's thrust on the matter, as well as adapt the
recent developments/changes in the technical specifications of motor vehicles that are
being acquired and used by the government.

3.0

Typology of Government
3..1

Hereunder is the updated typology of motor vehicles which shall apply to the
acquisition of vehicles that will be authorized for different National
Government Agencies, State Universities and Colleges, Government-Owned
and/or -Controlled Corporations, and Local Government Units:
3.1.1

Motor Vehicles

Motor Vehicle Classification

by Body Type

Guidelines on the Acquisition and Use of Government Motor Vehicles

10f3

a.
b.
c.
d.
e.
f
g.
h.
1.

J.
3.1.2

Motor Vehicle Classification by Service/Utilization

a.
b.
c.
d.
e.
f.
g.

3.1.3

Asian Utility Vehicle

Assembled Owner- or Passenger-Type Jeep/Jitney/Jeepney
BusiMini Bus
Car (Sedan and Hatchback)
Crossover Utility Vehicle
Heavy Equipment
Multi-Purpose Vehicle
Passenger Van
Pick-up
Sports Utility Vehicle

All-Terrain Vehicle
A11110redVehicle
Fire Truck
Medical Ambulance
Motorcycle
Patrol Vehicle
Specific- Purpose Vehicle

Other Motor Vehicle Classification

a.
b.
c.
d.

Aircraft
Motorized Banca
Motorized Boat
Seacraft:

The specific description of these transportation facilities are indicated in Annex

A of this Budget Circular.
4.0

5.0

Motor Vehicle Classification and Specifications Guide

4.1

To ensure the prudent use of public funds, specifically on the type of vehicles
to be acquired and used by the government, Annex B of this Budget Circular
provides the revised Motor Vehicle Classification and Specifications Guide
(MVCSG).

4.2

Among other provisions, the revised MVCSG indicates the adjusted engine
displacement of vehicles which are allowed to be acquired and used by the
government based on the models of vehicle that are in the market.

Repealing Clause
The provisions of Budget Circular No. 2010-02, and National Budget Circular No.
446 s. 1995, as amended by National Budget Circular No. 446-A s. 1998, and all other
Circulars and issuances that are inconsistent with this Circular are hereby rescinded or
superseded accordingly.

2 of 3 .

vy

6.0

Saving Clause
Cases not covered by the provisions of this Circular shall be submitted to the
Department of Budget and Management for resolution.

7.0

Effectivity
This Circular shall take effect immediately.

c:

c ~ ~'

~l}yJAMINE. DIOKNO
~

Secretary

O'!partm@nt of Budilet
and Mana~~m4nt
05-2016-00003.:

-051-22_1

30f3

r!/

Annex A
TYPOLOGY OF GOVERNMENT MOTOR VEHICLES

A.

Motor Vehicle Classification by Body Type

1.

Asian Utility Vehicle (AVV) - a fully or partially enclosed four-wheel general

purpose utility vehicle with two (2) compartments:
(i) the front cabin/cab with
two (2) side doors seating three (3) passengers, including the driver, on a full width
seat, and (ii) the rear deck accommodating
eight (8) to 16 passengers on facing
collapsible bench seats accessible through rear door(s).

2.

Assembled Owner-

01' Passenger-Type Jeep/Jitney/Jeepney

- a fully or partially
enclosed
four-wheel
assembled
general-purpose
utility vehicle
with locally
manufactured
chassis and body, and fitted with a reconditioned engine.

An owner-type jeep can accommodate five (5) to seven (7) passengers on the split
type or full width front seat and the two (2) to three (3) folding or removable rear
bench seats.
Passenger
two (2) to
front seat,
collapsible

type jeepney/j itney has two (2) compartments:

(i) the front cab seating
three (3) passengers, including the driver, on a full width seat or split
and (ii) the rear deck accommodating
12-18 passengers
on facing
rear bench seats. Side and rear doors are optional.

3. Bus/Mini

Bus - a four- or six-wheel heavy and long bodied motor vehicle with
locally manufactured or fully imported chassis and body. It is primarily designed to
carry a comparatively large number of passengers.

A bus for government use varies from full size bus with a seating capacity of 45 to
66 passengers, including the driver, to a minibus with a seating capacity of 26 to 34
passengers.

4.

Car (Sedan or Hatchback) - a four-wheel

enclosed automobile having four (4)

side doors. It can accommodate four (4) to five (5) passengers, including the driver,
on two (2) rows of seats. A common configuration includes a split front seat and a
rear bench seat. The passenger
cabin is separate from the limited luggage
compartment or trunk located at the rear.

5.

Crossover Utility Vehicle (CUV) - a four-wheel enclosed vehicle having dual side
doors and a fifth rear door or lift-up tailgate. It has a maximum seating capacity of
10 passengers, including the driver, on two (2) rows of front seats and foldable rear
seats.
A new classification from the auto industry. the CUV has the cargo and passenger
carrying space of a mini-van/passenger
wagon, the aerodynamics
and sleekness of a
car, and the rugged looks and feel of a sports utility vehicle.

6.

Heavy Equipment - a large and heavy-fabricated

automotive vehicle used in the
construction,
improvement, rehabilitation and maintenance of roads and bridges and
other infrastructure,
waste management
and environmental
sanitation,
and
related activities

Budget Circular No. __

2::.-0:...:1:...:6=---...:;:5'---_ dated

A u g u s t 2 ?_...2.Q16.

Heavy equipment may be sub-classified as: (i) earth moving equipment for moving
sailor other analogous materials from one location to another which are relatively
near each other for leveling uneven earth surfaces, and for similar projects;
(ii) compaction
equipment
used to make the soil rigid or well compacted
in
preparation
for asphalting or paving [cementing];
(iii) lifting equipment which
include crane/hoists
with boom and forklifts; (iv) excavating equipment for digging
ditches, canals, waterways, and tbe like; (v) asphalting/concreting
equipment used
in transporting
ready
mixed
asphalt/cement,
as well as those used for
applying/leveling
asphalt/cement
on the prepared soil; (vi) hauling equipment,
which include dWl1P trucks, garbage trucks, cargo trucks and trailers; and (vii) other
types of equipment such as pile driving, air pumping and shop equipment.

7.

Multi-Purpose Vehicle - a sub-classification

8.

Passenger

enclosed vehicle intended for conveying

passengers and/or hauling cargo. traditionally having four (4) doors (two side doors
for the driver and front passengers,
a single passenger side sliding door, and a
tailgate). The seating capacity ranges from eight (8) to 15 passengers, including the
driver. It has several rows of folding or removable
seats behind the driver.
It has no luggage compartment but an expandable area at the rear which can be used
for luggage, cargoes, etc. This type varies from full size to minivan models.

9.

Pick-up - a four-wheel compact truck with a low-sided open cargo hauler, and a
passenger cab (regular/single
or extended/crew
cab type) accommodating
two (2) to
six (6) passengers on split and/or bench seats with two (2) or four (4) side doors. A
pick-up truck is designed to carry both passengers and cargoes.

10.

B.

of an AUV. lt is similar in shape to a

van, but has a smaller body size and more streamlined and designed for maximum
interior room.

Van - a large four-wheel

Sports Utility Vehicle (SUV) - a type of passenger

vehicle which combines the

load-hauling
and passenger-carrying
capacity of a Crossover Utility Vehicle or
minivan with features designed for off-road driving. It is a high-performance
fourwheel drive car built on a truck chassis and a suspension designed for giving ground
clearance
for off-road driving.
Seating capacity varies from five (5) to 10
passengers.

Motor Vehicle Classification by Service/Utilization

1.

All-Terrain Vehicle - a four-wheel heavy sports utility type vehicle (SUV) with
high under-chassis
clearance and high piston displacements;
used in traversing
rugged and mountainous terrain or travelling off the road. Seating capacity varies
from five (5) to 10 passengers on front bucket or bench seats. regular rear bench
seat and/or several optional
rear bench seats, which can be configured
to
accommodate
passengers and/or cargoes.

2.

Armored Vehicle - a four-wheel

covering, and used in transporting
items such as gold, among others.

motor vehicle,
large quantities

armored with metal protective

of cash and/or highly valuable

A bank or agency performing

quasi-banking
functions
that would require the
transport of large amounts of money and valuables may be authorized to acquire an
armored vehicle.

Budget Circular No.

20f3

Most locally available armored vehicles are built by truck/body builders utilizing
chassis cab units and fitting them with armored plate and other necessary armored
vehicle accessories.
3.

Fire Truck - an automotive vehicle or full size heavy-built truck for use in firefighting activities. It is mounted/titted with the necessary equipment, such as water
tank, water pumps, hoses. ladder, and other basic fire-fighting apparatus.
Simpler versions are built/manufactured locally by truck/body builders utilizing
chassis cab units. The more sophisticated versions, such as those designed for high
rise building fires, arc imported from abroad.

C.

BlI

4.

Medical Ambulance - a vehicle equipped with basic medical/lifesaving apparatus

or equipment; the interior is designed for the conduction or conveyance of sick
and/or injured persons to, from or between places of treatment for an illness or
injury.

5.

Motorcycle - a two-wheel vehicle having one (1) or two (2) riding saddles and
sometimes a third wheel for support of a side-car, if present. This is used by field
workers assigned in rural areas not normally accessible to four-wheel vehicles, or
for police and/or highway patrol operations or similar purposes.

6.

Patrol Vehicle - a motor vehicle (four-door sedan, AUV, owner-type jeep or

motorcycle) for use in patrol operations within a city or municipality proper or
highway patrol operations where speed and stability are critical when pursuing other
speeding vehicles.

7.

Specific-Purpose Vehicle - a custom-built motor vehicle for special application or

for specific function/purpose

Other Motor Vehicle Classification

1.

Aircraft - a vehicle or carrier which is able to fly by being supported in the air. or in
general, the atmosphere of the planet. This type includes airplanes, helicopters,
gliders and other vehicles capable of atmospheric flight.

2.

Motorized Banca - a small locally-manufactured boat with a wooden hull having a

passenger capacity not exceeding 15, with RH and LH rigs, root stainless steel
propellers and engines

3.

Motorized Boat - a small and open vessel which is engine-powered and made of
wood or fiber glass for use on water to complement off-shore/interisland transport
and control operations

4.

Seacraft - an engine-powered vessel intended for navigation on rivers, seas, oceans

or other navigable waters

dget Circular No. _--=2-"-0.=.1=6_----"5'--_ dated

August 2).2016

301'3

4-

Annex B
REVISED MOTOR VEHICLE CLASSIFICATION AND SPECIFICATIONS

-----1

Particulars
(Intended Use/Users)
A.
1.

FOR EXERCISE OF EXECUTIVE FUNCTIONS

I

a.

For Department
Secretary
and
other
officials
of
equivalent
rank 111 NGAs,
GOCCs and LGUs

2.

For the Ambassador

or
Chief--of--Mission
of
Philippine
embassi es/ consulates
abroad for exclusive use in
the
country
where
the
embassy/
consulate
is
located

3.

For
Undersecretary

rank
and

or

Utility
Asian
Vehicle
(AUV)/Multi-Purpose
Vehicle
(MPV)/Crossover
Utility
Vehicle
(CUV)

Car
(Sedan
Hatchback)

I
f-!

or

I a.
I

Car
(Sedan
Hatchback)

1I
Engine displacement
2000 cc for gasoline
diesel

not exceeding
or 2500 cc for
-\
I

or

II

Engine displacement
not exceeding
1500 cc for gasoline or diesel

--or--

The Vice Chief of Staff and i b. AUV or MPV

the Comman~ing.
Generals ,i
of the Major Services of the
AFP
!

l3udgeICircu/a,.No_~_=

not exceeding
or 2800 cc for

Engine displacement
not exceeding
1600 cc for gasoline or diesel

For
Bureau
Director.
Regional
Director
or
departme!1t--wide/
bureau--

Engine displacement
2000 cc for gasoline
diesel

-+-

AUV or MPV

not exceeding
or 3000 cc for

--or-__

LGUs
b.
The Chief of Staff of the!
Armed
Forces
of
the
Philippines (AFP)
I
i
For Department
Assistant
Secretary and other officials
of equivalent rank in NGAs,
GOCCs and LGUs

Engine displacement
2200 cc for gasoline
diesel

Engine displacement
not exceeding
3500 cc for gasoline or diesel

7.

Car (Sedan)

6.

Car
(Sedan
Hatchback)
--01'--

Department I a.
and other I

officials of equivalent
in NGAs,
GOCCs

5.

Vehicle Specifications

Vehicle Classification

b.

4.

GUIDE

I Engine displacement
not exceeding
1500 cc for gasoline or diesel

I
!

.-~
dated August

22,2016

~
J oCG

Particulars
(Intended UselUsers)

Vehicle Specifications

Vehicle Classification

I
I

wide regional offices and

other officials of equivalent
rank in NGAs, GOCCs and
LGUs

I
,

I
I

I
I

For heavy field use in rural

remote areas with
and
generally
rugged
condition,
road
mountainous and rugged
terrain

a, Pick-Up

Engine displacement not exceeding

2500 cc for gasoline or diesel

-or-

I
I

b. All-terrain vehicle, I Engine displacement not exceeding

commonly referred i 2000 cc for gasoline or 2400 cc for
I to as Sports Utility I diesel
Lvehicle
.1

B. FOR TRANSPORT OF PERSONNEL, EQUIPMENT, SUPPLIES, PRODUCTS Al"D

MATERIALS

I
:,
-1

l.

For general urban use where

road
conditions
are
generally good

Engine displacement not exceeding

3000 cc for diesel

a. Passenger Van
-01'-

b. AUVorMPV

Engine displacement not exceeding

1500 cc for gasoline or 2500 cc for
diesel

2.

For use 111 semi-rugged

roads in rural areas

a. "Assembled"
Own er-Type Jeep

Engine displacement not exceeding

1800 cc for gasoline or 2500 cc for
diesel

-orb. "Assembled"
Passenger JeepneyType Vehicle

I
I
i

Engine displacement not exceeding I

2?00 cc for gasoline or 3000 cc for I
diesel
i

-. .

.)

I
I

I
4,

I
I

I
I

5.

For use of field personnel!

workers who by nature of
their functions have to
travel to remote areas not
normally
accessible
to
ordinary transport vehicles

Motorcycle

For transport of personnel!

visitors for activities related
to education, tourism, trade
and investment promotions,
banking
finance,
and
foreign affairs, and other
official functions

Passenger Van

Engine displacement not exceeding

200 cc

Engine displacement not exceeding

3000 cc for diesel

Budget Circular No. __

of

I
I

i
I

II
!

For mass transportation

I Engine

a. Bus

2.:....0"-'1"-'6=-----=-5
__

dated -.A.l1gtJs t

22,

2016

----:

displacement not exceeding

201"6

Particulars
(Intended Use/Users)
personnel/visitors
activities
related

for
to

8500 cc for diesel

-or-

f------.----+---------------j

education,
tourism,
trade
and investment promotions,
banking
and
finance,
foreign affairs,
and other
official functions

C.

Vehicle Specifications

Vehicle Classification

b.

Engine displacement
4000 cc for diesel

Mini Bus

not exceeding

FOR TRANSPORT OF SICK AND/OR INJURED PERSONS

1. For transport

of sick and/or
injured persons in hospitals,
and for government
agencies
where an ambulance may be
needed on stand-by
at all
times in case of emergency

a.

AUV or MPV (for

conversion
into an
ambulance
and
fitted
with
the
necessary
medical
equipment
and
apparatus)

Engine displacement
1500 cc for gasoline
diesel

not exceeding
or 2500 cc for

Engine displacement
3000 cc for diesel

not exceeding

-orb.

Passenger van (for

conversion
into an
ambulance
and
fitted
with
the
necessary
medical
equipment
and
apparatus)

-orc. Original
ambulance,
designed, built and
equipped as such by
the manufacturer

Specifications
may vary according
to
manufacturer
and
the
sophistication of the desired units

FOR PATROL OPERATIONS

----~----------------------1
For patrol operations within
a city or municipal proper

a.

Patrol Car

Four-door
car
or Hatchback)
b.

(Sedan

MPV

Engine displacement
2000 cc for gasoline

Patrol Jeep

I Assembled
! jeepney

not exceeding ,
or 2500 cc for,

I diesel

Ir-----,
c.

owner-type

1'

Engine

displacement

not exceeding,

I1 1800 cc for gasoline

or 250~~c

for

Budget Circular No. _---020=16"'-----.:::5

__

Patrol Vehicle

AUVor

Engine displacement
not exceeding;
1600 cc for gasoline or diesel

. dated August

22,2016

301'6

Particulars
(Intended Use/Users)

I
I

Vehicle Specifications

Vehicle Classification
diesel
d.

Patrol Motorcvcle

I Motorcycle

Engine displacement
200 cc

For

highway

a,

patrol

operations
where speed and
stability
are critical
when
pursuing
vehicles

other

car (Sedan

or Hatchback)

Engine displacement
not exceeding
2000 cc for gasoline or diesel

f-----------+----------------j

b,

Patrol motorcycle

I Motorcycle

Engine displacement
250 cc

E.

FOR TRANSPORT OF CASH OR VALUABLE ITEMS

1.

For

transport

of

large

a,

Armored

Vehicle

quantity of cash and highly

Four
or
six-wheel
valuable items such as gold custom-built
armored
and the like, Generally, only
vehicle;
most of the
a
bank
or
agency
locally
available
performing
quasi-judicial
armored
vehicles
are
functions that would require
b Ul'It
b Y t rue k/b 0 d y
the
transport
of
large
b Ul'Id ers
,
utili
1 lZlI10
amounts
of money
and
hassi
b
it
d'"
b
,
d l c aSSlS ea Ul1l s an I
valuables may e aut Itonze
I
fitti
tl
itl I
'
11 inz
tern
WI 1
an annored vehicle
armore~ d p Ia t e an d otrth er I
necessary
armored I
I vehicle accessories
I

F.
I.

Patrol car

Four-door

speedy

not exceeding:

not exceeding

Engine displacement
not exceeding
2500 cc for gasoline or 4500 cc for
diesel;
other
desired
features/
specifications
must be supplied by
the requesting agency

FOR FIRE FIGHTING OPERATIONS

To

provide

basic

fire-

fighting
capability
to the
Bureau of Fire Protection,
and
other
govenunent
agencies
whose
functions
and operations
necessitate
the maintenance
of a firefighting unit

a, Fire Truck
Custom-built
trucks

Since specifications
fire

(simpler
versions
are
built/manufactured
locally)

vary according

to
the
manufacturer,
model,
intended
use, etc.
all pertinent
data/specifications
about
the
proposed fire truck must be supplied
by the requesting agency,

f----------~

b. Original Fire Truck

sophisticated
and
fully
I equipped according to
I the intended use
1

More

I versions

G.

FOR ROAD CONSTRUCTION

Budget Circular No. ~016

__~

AND WASTE MANAGEMENT

dated Aug~t_2 2_~Ql.2_

I
-4of6

Particulars
(Intended Use/Users)

Vehicle Specifications

Vehicle Classification

-l

1.

constructi on, Graders, pay loaders,

For
improvement, rehabilitation dump
trucks,
road
and maintenance of roads, I rollers, cement mixers,
bridges
and
other compactors and related
infrastructure, and for use in equipment
waste
management
and
environmental sanitation

H.

FOR CARGO TRANSPORT AND DELIVERY OF EQUIPMENT

1.

For cargo transport/delivery

of equipment and other

cargoes,
the weights of
which are beyond the load
capacity
of
the
aforementioned
vehicles
which are for transport of
personnel,
equipment,
supplies,
products
and
materials, provided that the
transport/delivery
of
cargoes is part of the regular
function or operation of the

I a.

Since specifications vary according:

to
the
manufacturer,
model.
intended use, etc., all pertinent
data/specifications
about
the
proposed heavy equipment must be
supplied by the requesting agency.

Light Delivery Van

Four or six-wheel light Engine displacement not exceeding

cargo
vehicle
with 4500 cc
closed delivery van- I
type body
I----------+-----------------i

b. Light Cargo Truck

Engine displacement not exceeding
7000 cc

Four or six-wheel light

truck with open/dropside cargo hold

I----------+-----------------i

c. Heavy Cargo Truck

agency

Six or ten-wheel truck Engine displacement not exceeding!

with
open/drop-side 19500 cc
i
cargo
bold.
I
~
:
.

I.

FORAGRlCULTURAL

USE

1.

For cultivating agricultural! Farm Tractor

farms as experiment
or
demonstration stations such
as
those
111
State I
Universities and Colleges I
and
other
educational I
institutions
offering I
agricultural courses

J.

FOR WATER TRANSPORT

I.

For inland
waters
and
limited off-shore and interisland transportation

2.

For off-shore patrol

inter-island operations

and

r---------------+'----------I

3.

For inter-island
transport

I
Budget Circular No ..

water/sea

i
Inboard engine not exceeding
horsepower

30
:

Since specifications varv according I

to
the
manufacture;',
l11ode(
intended use, etc., all pertinent I
All types of sea vessel data/specifications
about
the I
excep~ the aforesaid propo.sed water transl~ort must be
motorized banca and! supplied by the requesting agency.
I

=~__

20~~__

Motorized Banca

I Motorized

Since the methods of cultivation to

specifications
the proposed
farm tractor must be supplied by the
requesting agency.

I be applied vary, the

I and other features of

Boat

dated August22.

2016

11

50f6

Particulars
(Intended Use/Users)

boat

Vehicle Specifications

Vehicle Classification

i,

,
I

K.

FOR AIR TRANSPORT

1.

For air transport

All types of aircraft

such
as
airplanes,
helicopters. etc.

Since specifications vary according

to
the
manufacturer,
model,
intended use, etc., all pertinent
data/specifications
about
the
proposed air transport must be ~
supplied by the requesting agency.
I
I

,
L.

FOR SPECIAL FUNCTIONS/PURPOSE

1. For

agency's
functions/purpose

special

Custom-built
special
function/purpose

Budget Circular No. _----=2'-"O'-"1'-"6'---~5"--_dated Augu!'l.t

for

22,

2016

Since specifications vary according

to
the
manufacturer,
model,
intended use, etc., all pertinent
data/specifications
about
the
proposed motor vehicle must be
supplied by the requesting agency.

(i of6