Garcia debunks Archival, insists no budget crisis in Cebu City

Local

THERE is no budget crisis in Cebu City; only sound fiscal management is being recognized at the national level.

This was the response of Mayor Raymond Alvin Garcia to claims made by Mayor-elect Nestor Archival Sr. that the city may not have enough funds to sustain operations, pay employees, and support ongoing projects.

In a teleconference on Wednesday, June 11, Garcia defended his administration’s fiscal record and cited a recent award from the Bureau of Local Government Finance (BLGF), which named Cebu City the top performer in Region 7 in terms of locally sourced revenues in 2024.

“We were also very conservative in our budgeting. We were thorough in our collection. Despite reading some unfavorable allegations from others contrary to what we are doing, we were, in fact, very circumspect in our spending,” Garcia said.

“This recent acknowledgment from the BLGF that Cebu City is number 1 in Region 7 in local revenue generation and number 3 in year-to-year growth is just a validation of our sound financial stewardship,” he added.

Garcia, who is currently on leave to fulfill a commitment as former Vice Mayor and President of the Vice Mayors’ League, said the city collected P5.99 billion in locally sourced revenue in 2024, a 25.84% year-on-year growth. This achievement placed Cebu City No. 1 in Central Visayas in total collections and No. 3 in growth rate.

“We focused on efficient tax collection without raising taxes. That’s why our efforts bore fruit,” he said.

He also emphasized that “locally sourced revenue” reflects only what the local government generates independently, separate from national allocations, and that this figure is a key measure of fiscal efficiency and capability.

The BLGF, an agency under the Department of Finance, confirmed the award in a letter to Garcia, also recognizing him with the Maharlika Award for Outstanding Public Servant for his leadership and fiscal management.

“On a personal note, this award is a vindication against all the negative comments and reports,” Garcia said. “I don't recall any Cebu City mayor receiving the Maharlika Award in the past.”

The awarding ceremony will be held on June 19 at Mezzo Hotel in Cebu City, where Garcia will receive the citations alongside the City Treasurer and City Assessor.

Garcia’s remarks come after Mayor-elect Archival, in an earlier interview, raised concerns over the city’s financial state, suggesting that available cash might be insufficient for salaries and projects. Archival admitted his assessment was based only on preliminary figures and liquid assets.

But Garcia brushed off the claim, saying such remarks were “based on speculation” and not grounded in facts.

“Maybe that’s for another time, but the statement was made without talking to the Treasurer’s Office,” Garcia said. “It’s based on ‘hearsay’.”

He acknowledged there will be a proper time to present a full accounting of assets, including updated valuations of real properties and fixed assets, which he said cannot be rushed or prematurely disclosed.

“I cannot give you an accurate report yet. That will come at a later date,” he added.(TGP)