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Thursday, November 24, 2005
VAT forces CH to hike power, fuel budget
By GingGing A. Campaña
Sun.Star Staff Reporter
CEBU City Hall is appropriating P12.7 million more for power bills this year and another P6 million for gasoline, oil and lubricants for service vehicles as it starts to feel the effect of the added 10 percent Reformed Value Added Tax (RVAT).
City Administrator Francisco Fernandez said he just wanted to make sure the City Council approves the allocation in this year’s third supplemental budget because the City is already suffering from the RVAT.
The Council yesterday approved Mayor Tomas Osmeña’s proposed P831.5-million supplemental budget with few amendments.
Not enough
The local finance committee earlier pegged a P71-million allocation for electricity in the 2005 annual budget.
But the amount is not enough to pay for the City’s power consumption this year, so the committee recommended P12.7 million more or a total of P83.7 million. In 2004, it consumed P80 million in electricity.
As for fuel and lubricants, the City allocated P49.2 million from this year’s annual budget. With the additional P6 million, it is expected to consume P55.2 million for 2005, or P22 million higher than its budget for gasoline, oil and lubricants last year.
Education
Councilor Jocelyn Pesquera, who authored the ordinance for the additional budget, moved for its approval after the Council’s budget hearing last Nov. 22 with Assistant City Treasurer Angelina Villareal, Fernandez and Acting City Budget Officer Marietta Gumia.
Also covered by the budget is P4.69 million in educational assistance for qualified City Hall personnel who may want to take up higher studies like law.
Some P689.6 million was also appropriated from the City’s domestic borrowings from Land Bank, representing the accrued interest for the total loan releases, for the South Reclamation Project.
The amount was included in the budget for recording in the City’s books of accounts.
Some P500,000 will go to the Municipality of Cordova as financial assistance subject to a memorandum of agreement. The amount will be used for the town’s initiative in accommodating displaced Badjaos from Cebu City at the Tonggo Island, which is part of Cordova.
Fund sources
Pesquera identified as source of funds for the third budget the P175,927 retained surplus, P21.7 million in revenues from taxes, P1.69 million in general income accounts, P689 million in domestic borrowings, P57.6 million in realignment from current appropriations, P27.8 million in realignment from continuing appropriations and P33 million from transfer of funds. |
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