Wednesday, November 12, 2008 P1.4 billion budget proposed
MAYOR Constantino Jaraula has proposed the budget of P1.4 billion for 2009, increasing more funds for general services, payroll and administrative costs of the local government of Cagayan de Oro.
General services take more than 30 percent of the proposed 2009 budget, which was submitted by Jaraula to the City Council for deliberation this week.
Around P429 million of the proposed budget will pay the fuel and other administrative costs of the Cagayan de Oro City Police Office, allowances for court judges, Register of Deeds, and payroll for its 3,000 City Hall employees and administrative costs of City Hall.
Jaraula proposed that his "intelligence funds" be increased to P25 million next year -- upped by P7 million from last year's 18.3 million.
Debt servicing accounted for 18 percent of next year's budget or over P252 million. Payment of the past loans incurred by the local government represents the third largest component of the 2009 budget.
The money will be spent to pay for the new Kagay-an Bridge behind the St. Agustine Church, the westbound bus terminal and Market in Barangay Bulua, the south diversion road from Barangays Balulang to Taguanao, and for the mortgages from loans made on Cagayan de Oro's Internal Revenue Allocation.
P70 million will also be paid to Philippine Veterans Bank loan of P500 million which will be used for the construction of the new City Council building. The amount represents the yearly amortization of the loan.
Jaraula proposed P48 million to pay the "subsidy" of the city public markets -- P30 million for Cogon public market and P18 million for Carmen public market -- built under "build-operate-transfer" schemes.
The Commission on Audit, in its 2005, 2006 and 2007 reports, said the "BOT" schemes undertaken by the City Government were "onerous" because the local government were made to pay the contractor, UKC Builders Inc., if the projected incomes of both markets are not economically sound.
Aside from the general services and debt servicing, Jaraula also proposed a budget of P310 million for the city's economic services that would take care of the operations of the City Engineering Office and Equipment depot, City Veterinary Office, City Agriculture Office, and the office of the City Environment and Natural Resources.
Jaraula also proposed P168.2 million for health, nutrition and population council -- a figure that did not change much in the past budgets in Cagayan de Oro.
Budget cuts
But the 2009 budget slashed the money for social security, social services, and welfare.
Jaraula proposed a three percent cut or P14 million on social security, social services, and welfare. He posed only a budget of P161.9 million lower than last year's P183.3 million.
The City Council, in its last week's budget deliberation, only set a P500,000 increase of the Civil Registry Office or P7 million for next year.
Pro-administration councilors cut the office supplies allocation of the Civil Registry Office to augment the travels of its head, Norma Diputado, and her staff.
This did not sit well to Diputado as she was overheard by reporters grumbling when she left the City Council budget meeting last week.
"Useless ni nga budget hearing," Diputado was overheard as saying.
Opposition councilors have opposed the increase of the intelligence funds of Jaraula.
Councilor Teodulfo Lao said the money could be spent elsewhere since this is not subject to scrutiny by the Commission on Audit.
He said he hopes the money will all be spent to the Cagayan de Oro City Police Office, which is tasked to maintain Cagayan de Oro's peace and order.
Councilor Roger Abaday said Mayor Jaraula should present a blue print on how he will spend the "intelligence funds."
