Mandaue mayor proposes P4.5-billion budget for 2026

Local

MANDAUE Mayor Jonkie Ouano has proposed a P4.5-billion annual budget for 2026, maintaining the same amount as this year to keep what he described as a “more realistic” financial plan for the city.

Ouano said Monday, Oct. 27, the city expects to collect around P3.8 billion to P3.9 billion in actual revenues, leaving a deficit of about P600 million.

“Sa tinud-anay man gud atoang budget for this year is P4.5 billion, same lang gihapon next year. Atoang makuha ra gyud nga actual nga amount is around mga P3.8 to P3.9 ra gyud so there is a deficit of around P600 million,” he said.

He said the 2026 proposal was deliberately kept at the same level to align programs and projects with what the city can realistically afford to implement.

The mayor said this approach avoids “bloated” spending and reflects a more practical allocation of resources.

“So atoang gipabilin sa in-ana nga kantidad para ma-align ta sa more realistic programs and projects nga atoang ma-implement,” he added.

Ouano noted that Mandaue City incurred a P600-million deficit in 2024 and is already facing a P300-million shortfall this year, based on reports from the City Treasurer’s Office.

Special fund deficit

Ouano said austerity measures have been implemented across departments, including within the City Mayor’s Office.

He said this is in response to the city’s growing fiscal strain and a deficit in the Special Education Fund (SEF).

The SEF deficit, which has reached P305 million, stemmed from what city officials described as an “unrealistic” revenue projection made by the previous administration of the City Treasurer’s Office.

The miscalculation led to overspending by the Department of Education (DepEd) Mandaue.

In earlier reports, Assistant City Treasurer Julia Ballesteros earlier said the actual SEF collection for 2025 amounted to only P281.9 million, which represents one percent of Mandaue’s real property tax (RPT) collection.

However, DepEd had already obligated over P587 million worth of projects and procurement based on a P744-million projection.

She said SEF revenues have historically averaged around P300 million annually, in line with the 1 percent RPT cap set by law.

Ballesteros explained that the law limits the SEF to only one percent of the city’s real property tax collections, which made the P744-million projection unrealistic.

Tax collections reached

Despite the fiscal challenges, Ouano noted that Mandaue’s business sector continues to perform well, citing the strong collection figures of the Business Permit and Licensing Office (BPLO), which has already surpassed its P1.6-billion target.

He is expected to present more details on the city’s revenue growth, particularly in business tax collections, during his 100 Days Report on Wednesday, October 29.

“Lipay lang sad ta kay atoang BPLO as this early, nakareach na siya sa iyang target, nakalapas gani og P1.6 billion atoang BPLO,” he said, referring to the s collection performance.

Ouano said priority allocations for 2026 will continue to focus on education, health, and social services, especially for senior citizens.

For infrastructure, about P100 million has been earmarked for flood control, with Ouano expressing optimism that the national government will provide supplemental funding.

The proposal will be reviewed and deliberated by the Sangguniang Panlungsod before its final approval.(MyTVCebu)