Cebu City 2025 budget ‘P18 billion may even be reduced’

CEBU, Philippines — Despite it being significantly reduced compared to this year’s, there is no certainty yet that the proposed P18-billion annual budget for 2025 would get a Cebu City Council approval because there is no clarity yet on its source of funds.

City Councilor Noel Wenceslao, committee on budget chairman, said that among those highlighted during the recent budget hearings is the emphasis on the source of funds, which is why there is even the possibility of reducing the proposed budget, but only with the consensus of the majority of the City Council.

"Tan-awon man gud nato ang sources of funds kung makaigo ba, because we do not want to make the same mistake in the previous years nga mas higher kaayo sa realized revenue," he said.

It has been two days now since the marathon budget hearing to scrutinize the 2025 annual began.

Wenceslao said they may have to evaluate the sources of funds to back the budget proposal, which should be aligned with the projected revenue for next year.

The marathon budget hearing began last Monday, with the different City Hall offices defending their respective budgets for 2025, and is expected to last until the end of the month.

Wenceslao said that after hearing from the Local Finance Committee and the City Treasurer’s Office (CTO), there is a possibility that the projected revenue of the city will not be enough to back the proposed budget.

“There is a possibility (not enough) kay mura’g ilang collection man gud, based on the actual collection, gamay ra then dako gyud ilang gi-propose. But then, gitan-aw nato og unsay possibility, nga maka-collection sila’g dako,” he said.

Wenceslao said that among those being eyed is the collection of the Real Property Tax (RPT) and payment from delinquent taxpayers.

He said that as of October 31, the city’s total revenue was just P8 billion, which is comparable to last year’s revenue for the whole year.

The councilor said the CTO still has two more months to go and improve on its collection.

He clarified, though, that since the budget hearing is still ongoing, it is still “premature” to rule out any decision on the fate of the proposed budget.

He said they would have to hear from the revenue-generating departments to know their collection efforts and discuss further with them the annual budget proposal.

Garcia had announced that the executive branch’s proposed annual budget for 2025 is P17,975,362,953.

The largest chunk of the amount is P2.4 billion for “Personal Services”, or for salaries, including bonuses, of employees; followed by P1.1 billion for senior citizens’ financial assistance.

Among the biggest allocations are the P688 million for the Local Development Fund; P446 million for current expenditures under the Maintenance and Other Operating Expenses; and P107 million for drugs and medicines.

In 2023, then mayor Michael Rama proposed a P100-billion budget for 2024, which was double than the P50 billion approved for 2023.

The City Council then trimmed down the 2024 annual budget to P25 billion, which did not sit well with now dismissed mayor Rama.

Garcia, on the other hand, expressed that he is optimistic that he will get the City Council’s backing on the proposed 2025 budget, saying that it is a “realistic one.”

He said that the City’s projected income for next year is the same as the budget he proposed. — /RHM (FREEMAN)