The Department of Budget and Management: has released guidelines on the adoption of the government purchase card (GPC) as an alternative mode of payment for certain government expenditures. The guidelines, contained in Budget Circular 2025-1 issued by DBM Secretary Amenah Pangandaman, outline the list of eligible expenditure types per program code or privilege type and appropriate monthly purchase limit for each authorized cardholder.
According to Philippines News Agency, the use of GPC aims to improve the procurement process by limiting cash advances and reducing administrative work related to procurement and accounting processes. The GPC functions as a credit card that can only be used to purchase pre-identified items within monthly limits and merchants or merchant category groups agreed upon by the agency with the servicing bank. The documentary requirements were specified to accompany the settlement of all GPC transactions.
The DBM circular dated March 12 specifies that the GPC can only be used for travel expenses, including airfare, car rental, ferry or cruise, and toll fees; miscellaneous small-value purchases; computer software, services, and digital content; hotel or lodging; representation expenses; and fuel, lubricants, oils, automotive parts, and services. The circular provides operational guidelines on how to implement the prescribed policies for the government-wide adoption and use of the GPC.
It also includes a provision allowing the implementing agencies to set specific duties and responsibilities in their internal guidelines to adopt the GPC based on their mandate and functions. It also provides limitations and grounds where cardholder privileges may be suspended or revoked.
The circular covers all departments, agencies, and instrumentalities of the executive branch, including state universities and colleges (SUCs) and government-owned or -controlled corporations (GOCCs) not covered by Republic Act (RA) 10149 starting Fiscal Year 2025. The legislature, judiciary, constitutional commissions or offices enjoying fiscal autonomy, and local government units, and GOCCs covered under RA 10149, are encouraged to adopt and implement the policies and guidelines prescribed under the circular.
In a statement on Thursday, Pangandaman urged all government agencies to avail themselves of the “fast, convenient, and more secure” process of purchasing goods and services through the use of GPC. “Malaking pakinabang po ito lalo na sa pagpapadali at pagpapahusay ng proseso ng ilang transaksyon ng gobyerno. Isang paraan ng pagsulong natin ng efficiency at transparency sa pamamagitan ng (This will be a great benefit, especially in facilitating and improving the process of some government transactions. One way we can promote efficiency and transparency is through) digitalization initiative,” she said.
The circular takes effect immediately upon its publication in the Official Gazette or a newspaper of general circulation.
