Rama submits P10.5B budget to City Council

CEBU, Philippines - A P10.49-billion annual budget was submitted by Cebu City Mayor Michael Rama before the City Council for approval last Wednesday, a day after a powerful 7.2 magnitude earthquake shook the Cebu and Bohol.

The proposed amount for 2014 is lower than what Rama proposed this year (P11.8 billion) but higher than what he requested in 2011 (P6.8 billion).

“As with the previous years, my administration continues to promote a bare budget for the coming year, or one that is balanced, adequate, responsive and effective. This year is no different. Participative, multi-sectoral and consensus bottoms-up budgeting has always been the hallmark of my administration, for I believe that no one person has the monopoly of ideas, let alone the vision for our beloved city,” read Rama’s budget statement.

The proposed budget, however, would have to pass scrutiny by a city council dominated by his political enemies. Last year, the council only approved P5.4 billion of the proposed P6.8 billion, and slashed around half of the P11.8 billion he requested for this year by approving only P5.2 billion.

The 2014 proposed annual budget has general fund sources amounting to P10.53 billion, with P10.2 billion in identified expenditures, leaving an unappropriated balance of P331,000.

Specifically, the General Fund Proper sources include Internal Revenue Allotment share, tax revenue, economic zone share, and capital/investment receipts. The biggest revenue source is capital/investment receipts (P6 billion) while the smallest is the city’s economic zone  share (P200 million).

The total estimated revenue from special accounts is set at P334 million and includedsing collections from the city abattoir, city public markets, housing projects, city hospitals, traffic fines

General fund expenditures included that for personal services, maintenance and other operating expenses, subsidy to special accounts, financial expenses, and capital outlay.

The biggest allocation is for capital outlay (P4 billion) while the lowest is the subsidy for special accounts (502 million).

The proposed budget includes an allocation from the Annual Investment Plan amounting to P550 million, which is way smaller than the requested P15.2 billion.

“The decrease could be attributed to the process of the local finance committee of identifying and prioritizing these projects. Also, they corrected possible duplication of listed projects,” said Assistant City Budget Officer Marietta Gumia. (FREEMAN)