LTO reiterates it cannot use funds collected from motorists daily to make cards or license plates

To say that the Land Transportation Office (LTO) is in the hot seat once again is an understatement. Not only does the government agency have a dwindling supply of license cards, but they are also set to run out of license plates for both motorcycles and motor vehicles.

As a result, motorists who will need to apply or renew for a license will have to settle for a paper-printed version. On the other hand, new car owners will have to get a temporary license plate from dealers or make their own temporary plate (with special authorization from the LTO).

But some of you may be wondering why can't the LTO just use the funds they collect from motorists in order to procure the necessary materials to make plastic license cards and license plates. Unfortunately, that doesn't work that way according to the LTO.

Like all government agencies, the LTO actually gets funds through the General Appropriations Act (GAA). This is passed by both Congress and the Senate every year and determines how much budget the entire Philippine government needs to function properly. In addition, this law determines how much budget a government agency requires in order to do its duties, as well as make its own projects a reality.

LTO: We are not authorized to use daily funds to make plates, licenses image

Having said that, this means the funds the LTO collects daily are not retained within the agency. Instead, they are remitted daily to the Bureau of Treasury which is under the Department of Finance (DOF). In a nutshell, the LTO is not allowed to use the funds they collect each day in order to procure the materials.

“The LTO is not authorized to retain funds collected/received from the day-to-day operations. All funds collected are remitted the following day. LTO’s funds come from the GAA, and not from the daily collections,” said LTO Finance Division Chief, Marivic Lopez.

This is not the first time the issue about the LTO not being able to procure the materials or make driver's licenses/plates. Back in 2021, then DOTr Assistant Secretary Goddes Hope Libiran said in a statement that the LTO neither holds nor maintains any revenue it collects from motorists.