Cebu City Mayor Nestor Archival has proposed a ?13.4-billion annual budget for 2026, with key priorities focused on health and social services, education, agriculture, and food security, among others.
The proposed budget was officially transmitted to the City Council during its regular session yesterday. Archival said the proposal reflects the city’s financial plan and development priorities aligned with its Annual Investment Program (AIP).
‘As Cebu City continues to be a dynamic hub of commerce and culture, this budget reflects our strategic priorities to foster inclusive growth, enhance public services, and ensure sustainable development,’ the proposal reads.
Among the key priorities outlined in the proposal is health and social services, which aims to strengthen social support programs, allocate adequate resources for healthcare, and fund housing development for displaced informal settlers.
The administration also plans to enhance the city’s scholarship program by streamlining requirements and continuing the 24/7 library service.
Funds will also be allocated for agriculture and food security, which includes implementing pilot farm demonstrations in both the north and south districts and providing rice subsidies.
For climate resilience and smart infrastructure, the city government will prioritize green urban development, including the installation of solar power systems in city-owned buildings.
Under public safety and disaster preparedness, the city plans to boost its capacity to respond swiftly and effectively to emergencies and natural calamities.
To address flooding, the administration intends to undertake river desilting operations and revisit the existing drainage master plan.
The city is also prioritizing digital governance by improving interdepartmental coordination through digital platforms and internal systems. It also plans to continue upgrading infrastructure, including farm-to-market roads.
As part of its revenue generation strategy, the city aims to improve collection efficiency through technology-based systems, including online payments. It also plans to streamline operations by standardizing and simplifying government processes.
Budget breakdown
Of the ?13.4-billion proposed budget, five percent-or over ?750 million-will go to aid to city barangays. More than ?1.6 million is allocated for miscellaneous other purposes, at least ?768 million for the local development fund, and ?6.5 billion, or 43 percent of the total, for general public services.
The proposal also includes ?675 million for calamity response under the Local Disaster Risk Reduction and Management Council (LDRRMC), ?3.9 billion for social services, and ?762 million for economic services.
For projected revenues, hospitals are expected to generate at least ?275 million, while markets are seen to contribute ?150 million. The Local Development Fund is projected at ?768 million, with the city’s ecozone share estimated at ?600 million.
Tax revenues are expected to reach ?5.4 billion, non-tax revenues at ?3.2 billion, and the national tax allotment at ?3.8 billion.
Lower than previous years
Last August, Archival said the Cebu City Government was looking at what could be its lowest annual budget proposal in five years, initially targeting around ?11.5 billion.
As early as August, he had directed department heads to focus on implementable projects aligned with the city’s overall development plan. Earlier projections placed the annual budget within a practical revenue forecast of ?9.5 billion to ?10.5 billion.
However, Archival instructed the City Treasurer’s Office and other revenue-generating departments, including the Office of the Building Official (OBO), to intensify collection measures and aim for ?11.5 billion in revenues. He emphasized that these offices have assured him the target is achievable.
To meet this goal, Archival said one of the administration’s priorities is to strengthen collection efforts without increasing Real Property Tax (RPT) rates, noting that ‘the city still has millions in collectibles that remain uncollected.’
He also directed a closer review of more than 50,000 businesses across the city to identify those that have yet to register.
In line with this, he instructed the Business Permit and Licensing Office (BPLO) to streamline business permit renewals to encourage more entrepreneurs to register.