Raymond: 'Under my watch, there was no budget deficit'

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THERE is no budget deficit.

Former mayor Raymond Alvin Garcia denied accusations that his administration left Cebu City with a multibillion-peso budget deficit. He said there was “no shortage of funds” during his term.

“We have cash deposits of about 11 to 12 billion… the JO [job orders] don’t even reach P100 million,” Garcia said in an interview. “Muingon na dayon nga maong dili ka renew ug JO tungod kay budget deficit. I think that is an inaccurate statement.”

Garcia was referring to Mayor Nestor Archival Sr.’s earlier claim that the city government is facing a projected budget shortfall of P2 billion to P3 billion, prompting a temporary hiring freeze and selective contract renewals.

“If you pay all of those [payables], maybe madako ang kuwang. But whose fault is it nga wala mabayran ang sa previous years? I mean it was the previous mayors, including Tommy Osmeña, including everybody,” Garcia said.

“Ako, I am certain that during my watch in 2024 to 2025, there is no budget deficit.”

Garcia explained that the city's liabilities may appear significant only if historical payables from as far back as 2008 to 2010 were suddenly paid in full, which he said is not a fair indicator of financial management under his leadership.

Meanwhile, at another press conference on Friday, July 4, former mayor Michael Rama made a restrained statement about the city’s finances.

Asked about the city’s budget status following Archival’s claim that even employee salaries could be at risk, Rama responded:

“If I were not suspended, there would have been a lot, so I cannot answer that, actually, because I’ve been out. That time… I have been serving all of you 1 year or so, so I cannot speak for what happened henceforth.”

Archival, who officially assumed office on July 1, earlier said the city’s current spending level may outpace its income, citing a deficit of P2B to P3B based on preliminary reports.

“Daghan kaayong gusto magpa-renew, pero akong giistoryahan tagsa-tagsa nga for the meantime, naa koy gitan-aw nga report nga deficit ta og mga P2 billion to P3 billion karon,” he said in an interview.

According to Archival, the city generated P5.49 billion in revenue in the first half of 2025 but had already spent P3.6 billion, more than P2.6 billion of which went to Maintenance and Other Operating Expenses (MOOE), including JO salaries.

He warned that if the current spending pace continues, annual expenses may hit P11 billion, overshooting the projected revenue of P9 billion.

“Kung ato silang i-renew tanan, dili gyud ta ka-sweldo nila… Mao ni ang challenge nato.”

To manage the situation, Archival has implemented selective personnel renewals, with around 1,400 casual employees already renewed based on recommendations from department heads.

For JO workers, renewal now requires submission of project proposals approved by the mayor.

Henry Tomalabcad, the city's Human Resources Development head, said they are following a streamlined process:

“Ang sabot namo ni Mayor, dili mi mudawat og laing endorsement or application. Kinahanglan gikan gyud sa mayor, ug ang chief of staff ra ang mudala sa mga dokumento diri sa HR.”

The city currently employs more than 8,500 personnel, including regular, casual, and JO workers. Tomalabcad said they are hopeful that 60 percent of personnel can eventually be retained.

Vice Mayor Tomas Osmeña earlier linked the alleged deficit to what he called “wasteful spending” by the previous administration, including a canceled P4.4-million luxury SUV purchase.

“Baga kaayo sila’g nawng nga mupalit ug BYD, the most expensive brand and overpriced pa with 1 million. Wala sila nauwaw. They are proud,” Osmeña told reporters on July 3.

He said the BYD Tang SUV deal was P1.1 million above retail and criticized the transaction as “absolutely vulgar.”

“The City Government has no business buying such an expensive vehicle for personal service,” he added. “There are dozens, if not hundreds, of vehicles that are similarly overpriced. There are thousands of other purchases that are equally anomalous.”

Garcia confirmed that the SUV deal was canceled and never paid for, denying the accusations of excess and linking the perception of deficit to unpaid liabilities from prior administrations, including Osmeña’s.(TGP)