ILOILO CITY — The Iloilo City Government is eyeing a P4.5-billion proposed budget for 2026, slightly higher by P5 million than this year’s P4.1-billion approved budget, signaling a steady push toward stronger social programs and resilient community initiatives.

In her budget message to the City Council, Mayor Raisa Treñas outlined a proposed P4,500,155,348 spending plan, reflecting an 8.62 percent increase from 2025.

Based on the estimates of the Local Finance Committee, 55.15 percent or roughly P2.5 billion of the 2026 budget will come from local sources, while 44.87 percent or about P2 billion will be drawn from external sources, including the National Tax Allocation (NTA) share and proceeds from the city’s Economic Zone.

Tax revenues remain the city’s primary local income, projected at P2.157 billion—up by 2.72 percent compared to this year’s collection target.

Among the notable highlights of the 2026 proposed budget are the increase in funding for the Assistance to Individuals in Crisis Situation (AICS) program from P12.5 million to P30 million; the allocation of P30 million for the Cash-for-Work for Resilient Communities program under the Public Service Employment Office (PESO); a 50 percent increase in the Educational Financial Assistance Program for college students; a 284 percent jump in the budget for medicines addressing non-communicable diseases; and additional funding for barangay outreach and community-based programs.

Of the total proposed budget, 39.92 percent will go to Maintenance and Other Operating Expenses (MOOE), 29.98 percent to Personal Services (PS), 17.15 percent to Special Purpose Appropriations (SPA), 10.31 percent to Capital Outlay (CO), and 3.24 percent to Financial Expenses (FinEx), which covers the city’s debt obligations.

Councilor Rex Marcus Sarabia, chairperson of the Committee on Appropriations, assured that the proposed 2026 budget will undergo thorough scrutiny during the upcoming hearings to ensure transparency and fiscal prudence.

However, Vice Mayor Lady Julie Grace Baronda earlier voiced concern over the reduced allocation for the Office of the Vice Mayor and the Sangguniang Panlungsod, saying the budget cut could hamper legislative operations.

The 2026 budget deliberations are expected to be among the most closely followed in years as the city seeks to balance essential services, social support, and infrastructure priorities amid growing economic pressures.