IN a move that underscores fiscal restraint amid shifting economic winds, the city government has pared down its proposed 2026 budget by a striking P600 million — a recalibration that signals prudence over ambition.
According to a budget summary presented during a recent public budget deliberation, the city’s total financial plan for Calendar Year (CY) 2025 stood at P10.05 billion.
The initial 2026 proposal had aimed slightly higher at P10.15 billion.
But after weeks of review and recalculations, the adjusted figure now lands at P9.55 billion — a leaner, more cautious blueprint for the year ahead.
Under the General Fund, allocations shifted from P7.63 billion in 2025 to P8.29 billion in the early 2026 draft — before being revised down to P7.69 billion.
Notably, PhilHealth contributions were halved, dropping from P1.2 billion to P600 million, while the Special Account in the Local Economic Enterprise (Salee) fund saw a modest uptick to P1.26 billion.
After accounting for PhilHealth deductions, the recalibrated totals stand as follows:
ᴏ CY 2025: P8.85 billion
ᴏ CY 2026 (Proposed): P9.55 billion
ᴏ CY 2026 (Adjusted): P8.95 billion
The numbers reveal a subtle truth: while the proposed 2026 budget initially projected a P700 million bump from the previous year, the revised version narrows that growth to a mere P100 million — a signal that fiscal discipline has taken precedence over expansion.
“Ato na ni gi-agree as a whole, na ang budget, i-reduce, we have to be conservative, kung unsa ra i-gasto, mao ra gyud na siya. Dili na ta mag-overshot,” said City Councilor Alam Lim, chair of the Appropriations Committee, as he defended the reduction.
He said the council should support the mayor in delivering services to the people.
City officials cited “realignments” and “updated revenue forecasts” as key reasons behind the downward shift, stressing that priority programs in healthcare, infrastructure, and social services remain intact.
The Department of Budget and Management (DBM) has directed all local governments to finalize and submit their 2026 budgets before year-end to align with the national Medium-Term Fiscal Framework.
But not everyone is on board.
Councilor Agapito Eriberto G. Suan voiced skepticism over the city’s projections, calling them “bloated.”
“This is my personal opinion. I just feel that bloated kaayo ang budget. If we are to make estimates, it must be realistic and achievable.,” Suan said.
Suan also questioned the timing and procedure of the budget’s adjustment, hinting at procedural inconsistencies during deliberations.
He added: “If they were to estimate local revenue sources at P5 billion, but estimated this to P8.8 billion; that kind of increase is impossible to achieve.”
The City Council is slated to finalize the adjusted 2026 budget by November, before forwarding it to the regional DBM office for review.
As of press time, deliberations are still underway — and so is the debate between ambition and austerity.
