Cebu City eyes P13.4 billion budget for 2026

Local

CEBU CITY is planning a ₱13.4-billion spending program for 2026.

This is a budget, Mayor Nestor Archival said earlier, that is built not on lofty promises but on “practical revenue” and achievable goals for a growing metropolis.

The proposed annual budget prioritizes health and social services, education, agriculture, food security, and climate resilience — programs that Archival said embody the city’s development agenda under its Annual Investment Program (AIP).

“This budget reflects our strategic priorities to foster inclusive growth, enhance public services, and ensure sustainable development,” the proposal stated.

Archival said the 2026 proposal aims to move away from inflated projections that plagued previous administrations. Instead, his team focused on “realistic, implementable” projects that directly benefit communities.

Health and social welfare take a significant portion of the budget, including funds for hospitals, housing for displaced residents, and welfare programs. Education also remains a core focus, with continued funding for scholarships and Cebu City’s 24/7 library service.

To ensure food security, the city plans to establish pilot farm projects in both the north and south districts and extend rice subsidies to local farmers.

Of the total proposed amount, ₱6.5 billion — or 43 percent — will go to general public services. Around ₱3.9 billion is earmarked for social services, ₱762 million for economic services, and ₱675 million for disaster response.

The city will also allocate over ₱750 million in aid to barangays and ₱768 million for the Local Development Fund. Miscellaneous purposes are pegged at ₱1.6 million.

Projected income sources include ₱5.4 billion in tax revenues, ₱3.2 billion in non-tax revenues, and ₱3.8 billion from the national tax allotment. City hospitals are expected to generate ₱275 million, while public markets may contribute ₱150 million.

Archival said his approach to budgeting is “based on what the city actually earns.”

“The practical revenue nga atong mahibaw-an is something like ₱9.5 to ₱10 billion, so akong gihangyo sa assessor, CTO, ug tanan nga revenue-generating offices nga mu-target ta og something like ₱11.5 billion. Within that, dinha na ta mukuha sa atong budget per department,” he said.

He added that many departments in the past “had budgets but no actual cash,” urging a more honest assessment of spending before new allocations are proposed.

“Kung imong tan-awon, naa silay budget pero basically way kwarta. Mao na nga akong gi-request nga i-revisit nila ang ilang mga gasto sa previous years before proposing new allocations,” Archival said.

The mayor’s fiscal stance comes after the Commission on Audit flagged the ₱51.4-billion budget under former mayor Michael Rama in 2023 as “unrealistic” due to exaggerated income estimates.

Archival said his administration intends to avoid the same mistake.

“Mao ni ang kinahanglan natog doable or practical budget,” he said. “Makahimo ta og mga projects nga klaro nga magamit sa kaayohan sa katawhan.”

The City Council is expected to begin budget hearings soon before final approval by year-end.(TGP)