The Cebu City Council expressed its being realistic and practical as it slashed the proposed 2024 annual budget from P100 billion to P20 billion.

The annual budget ordinance authored by City Councilors Noel Wenceslao and Jocelyn Pesquera said that the total budget will be P19.998 billion appropriated for the general fund proper, which consists of personal services, maintenance, and other operating expenses, and capital outlay while P2.055 billion for special accounts.

Originally, Mayor Michael Rama proposed P100 billion for 2024.

The Office of the Mayor asked for P500 million but was amended to P400 million. The allocation includes expenditures for various activities such as Charter Day(P15 million), Christmas(P15 million), Teacher's Day Celebration(P10 million), Sinulog (P70 million), other activities(P90 million), and Palarong Pambansa (P200 million).

For special bodies, projects and programs, and other operating expenses, the Senior Citizen Affairs Office was allocated with P4 million; the Cebu City Wildlife Rescue Conservation Protection Facility with P10 million; South Road Properties Management with P10 million; and Barangay Affairs Office with P42.6 million.

Pesquera cited Section 5 of the ordinance, which said appointments to replace defunded positions in the regular workforce will be funded by adding money from the lump-sum appropriations for salaries and wages, which follows the policy guidelines of the local chief executive or the presiding officer of the Cebu City Council, in line with Section 336 of Republic Act 7160, or the Local Government Code of 1991.

She added that Section 6 of the ordinance allows the local chief executive or the Sanggunian's presiding officer to increase any item in their approved annual budget using savings from similar expense categories within their budget. However, any increase from lump-sum appropriations or capital outlay accounts, such as motor vehicles and information and communications technology equipment, needs approval from the City Council.

Wenceslao said the sources for general funds include tax revenue (P77.5 billion), non-tax revenue (P10,553,965,069), National Tax Allotment (P2,904,572,882), share from government-owned and controlled corporations(Philippine Charity Sweepstakes Office (P288 million, share from economic zones(P600 million), and other sources such as profits from joint ventures (P7 billion).

Other fund sources for special accounts include city hospitals (Cebu City Medical Center, Guba, and Bonbon) through non-tax revenue (P1.021 billion) and subsidy from the general fund proper (P164,212,645); Division for the Welfare of the Urban Poor through non-tax revenue(P20 million) and subsidy from the general fund proper (P159,272,468); city markets, through non-tax revenue (P150 million); and the Local Development Fund, a subsidy from the general fund proper (P580,914,576.40).

The expenditures from the general fund include personal services(P2,412,370,436), MOOE(P1,906,015,572.30, and capital outlay(P15,680,077,524). While for special accounts include personal services(P617,883,097), MOOE(P764,500,865, and capital outlay(P671,697,776.40).

Pesquera, an ally of Rama reiterated that if the 2024 budget proposal were based on projections, it would be preferable for the City to first achieve its projected income through revenue collection in the upcoming years before considering an increase in its annual budget.

In December 2022, the council approved the P50 billion annual budget for 2023. However, the City only collected a gross amount of P7,556,320,087.76 as of October.