City’s ‘realistic’ annual budget for 2018 stands at P6.2B
Cebu City Mayor Tomas Osmeña submitted the proposed 2018 annual budget amounting to P6.2 billion.
A big chunk will go to allocations for the City’s financial assistance for senior citizens, debt servicing, infrastructure projects and payment for garbage collection and disposal.
Osmeña, in his message to the City Council, said that the proposed budget is smaller than this year’s approved budget of P7.2 billion because it is the amount that the treasurer’s office deems as a realistic estimate of the City’s projected revenues.
Around P2.8 billion is set aside for personal services and maintenance and operating expenses for various offices and departments.
The executive department also set aside P605.7 million for the cash aid to the elderly, and P506.6 million for debt payments. Some P362.8 million was allocated for the local development fund (LDF), which finances the construction and rehabilitation of health centers, government building, roads, highways and bridges, and other infra- structure projects.
Aside from LDF, P60 million is allocated for the paving and retreading of various streets. The executive department is also proposing P313 million for garbage collection and disposal.
Last Tuesday, the Local Finance Committee submitted the budget proposal to the secretariat of the City Council, which is expected to discuss it on Tuesday.
Osmeña stood pat not to use the P9.8 billion that the City received as down payment and installment for the sale of South Road Properties (SRP) lots in 2015.
“Doing so, as what the previous administration did, is illegal. It violated many COA (Commission on Audit) circulars. The Deed of Installment crafted by the previous administration expressly provided that only upon full payment by the buyers the Deed of Absolute Sale be executed for the purpose of transferring title to the buyers (Section 3.4),” portion of Osmeña’s letter read.
“The buyers may also unilaterally demand a rescission of the contract. Our accounting office has therefore appropriately recognized the proceeds of the sale as ‘Other Deferred Credits’ that cannot be used as a source of funds,” the mayor added.
The executive department said that its main source of funding will be tax revenues.
The City Government expects to earn around P6.2 billion from internal sources, which include tax revenues and non-tax revenues, and around P2 billion from external sources, which include the City’s share from the Internal Revenue Allotment and the ecozone.
The other items in the 2018 proposed annual budget are P212 million for the City Hospitalization Assistance and Medicines Program and the Long Life Program, P204 million for the scholarship program and P172.8 million for aid to the barangays, among others.