Cebu City 2026 budget slashed to P13.3 billion

Local

THE proposed 2026 budget of the Cebu City government has been trimmed down to about P13.3 billion.

This was after the Committee on Budget and Finance flagged vague manpower requests, unclear procurement plans, and underutilized allocations across several departments.

In a report submitted to the council, the committee recommended multiple reductions to Mayor Nestor Archival’s original P13.465-billion proposal. It cites the need to streamline spending and impose tighter controls on hiring and purchases for next year.

The panel’s adjustments follow what it described as the mayor’s fiscal direction of cutting unnecessary expenditures, prioritizing essential services, and enforcing stricter accountability in City Hall’s budget operations.

Earlier, Archival had submitted a P13.465-billion plan for 2026, already lower than this year’s P14.6-billion budget.

Following the committee’s review, the General Fund Proper was reduced by P21.83 million, while Special

Accounts were trimmed by P17.7 million. These adjustments brought the revised budget figure to roughly P13.3 billion, pending final approval by the city council.

The proposed 2026 spending plan covers the operations of all City Hall departments from January to December next year and aligns with Cebu City’s Annual Investment Program.

Moreover, the city’s financial plan is distributed as follows: General Public Services at P6.526 billion, Social Services at P3.962 billion, Economic Services at P762 million, Reserve for Calamity at P675 million, Local Development Fund at P768 million, Aid to Barangays at P750.8 million, and Miscellaneous at P20 million.

By major expense class, Personal Services totals P3.402 billion (within the 45% legal limit), MOOE stands at P8.526 billion (63% of total), and Capital Outlay at P1.536 billion (11% of total).

City Treasurer Emma Villarete told councilors that the 2026 proposal was crafted “lower than the preceding two years,” following a “prudent and judicious prioritization process” to keep the city within realistic revenue limits.

The committee’s concerns centered on City Hall’s lump-sum job order (JO) hiring requests, many of which lacked clear justification for project-based engagements, specific qualifications required, the number of personnel per department, and detailed descriptions of roles.

The panel found “redundancy and duplication” in manpower proposals, leading to significant budget cuts.

To address this, the committee added a rule requiring all manpower reinforcement charged to Maintenance and Other Operating Expenses (MOOE) to obtain prior approval from the Sangguniang Panlungsod, supported by detailed documentation specifying program assignment, qualifications, and exact personnel numbers.

Several City Hall offices faced budget reductions due to vague hiring requests, including the Barangay Affairs Office (P19.5 million cut), City Planning and Development Office (P12.76 million cut), City Health Department (P4 million cut), City Agriculturist & CENRO (P11.7 million cut), Division for the Welfare of the Urban Poor (P7.7 million cut), and City Markets operations (P10 million cut).

Additionally, a substantial portion of the 2026 proposal covers capital outlay purchases such as ICT systems, computer equipment, motor vehicles, electric vehicles, and heavy equipment.

To prevent misuse, the panel mandated that all ICT procurement must first receive approval from the Management Information and Computer Services (MICS), and all vehicle and heavy equipment purchases must have prior approval from the city council.

Security services procurement also drew scrutiny as funds for security guards appeared across multiple accounts without clear justification.

The committee stipulated that only licensed private security guards accredited by the Philippine National Police Supervisory Office for Security and Investigation Agencies (PNP-SOSIA), in compliance with Republic Act No. 11917, may be hired.

Concerns were also raised regarding drug and medicine procurement after the Department of Social Welfare and Services admitted the absence of a licensed pharmacist overseeing the Long Life Program’s supplies.

Consequently, the committee imposed rules requiring council approval for all medicine purchases, exclusive dispensation by licensed pharmacists, and mandates for departments to ensure proper storage and tracking systems.(TGP)