Daily Tribune'It must be taken into consideration the effects when the proposed budget exceeds the actual income of the city, which would indicate lower control and negatively impacts the Cebu City Government'
Photo courtesy of Cebu City Government | FB
The Cebu City Council has recently approved a P14.6-billion annual budget for 2025, slashing P3.3 billion from the original proposal.
During a “hybrid” special session, members raised questions about the proceedings and their plenary rules.
The approved budget was 18.44 percent less than Mayor Raymond Alvin Garcia’s original proposal of P17.9 billion.
Eight members voted for the approval of the P14.6 billion budget, while seven voted against it.
North District City Councilor Noel Wenceslao said they introduced the amendments, which are mostly budget reductions, to better reflect the estimated revenue for 2025 and to consider the utilization of the 2024 budget.
Wenceslao, who chairs the committee on budget and finance, indicated that the City Treasurer’s Office reported that the city’s revenue as of 31 October was just over P8 billion, significantly lower than the projected income of more than P9 billion.
The committee noted that the actual income was far below the target income for 2024.
“It must be taken into consideration the effects when the proposed budget exceeds the actual income of the city, which would indicate lower control and negatively impacts the Cebu City Government. It will affect profit margins due to additional expenses, productivity due to opportunity cost, and financial stability due to decreased liquidity,” the committee report said.
Reductions were made to various budget items, including Economic Recovery budget from P100 million to P1 million; miscellaneous expenses for free education from P556 million to P500,000; MOOE expenses from P10 million to P7 million; graduation subsidy from P13.5 million to P1 million; miscellaneous expenses for city education initiatives from P2 million to P1 million; livelihood program from P100 million to P1 million and miscellaneous expenses for Climate Change Adaptation and Mitigation from P2 million to P1 million.
Also slashed were other supplies and materials expenses from P3 million to P500,000; PAAS 911 Emergency Call Handling System from P25 million to P13 million; Digital Traffic Lights System (Phase 3) from P250 million to zero; senior citizens Council budget from P10 million to P5 million; other supplies and materials, programs, and activities from P3.5 million to P1 million; other MOOE from P2 million to P1 million; Comprehensive Climate Change Mitigation and Adaptation budget from P200 million to P1 million; financial assistance to the Vice Mayor’s League from P3 million to zero and construction of the new legislative building from P100 million to zero.
However, few allocations were increased, including the scholarship program from P331 million to P340 million, and the health sector allotments from P100 million to P160 million.
