Monday, November 03, 2008
Cebu City biggest spender; new cities scrimp
By Rene H. Martel
Sun.Star Staff Reporter
THE Cebu City Government is the biggest spender among all cities in Cebu, but it is also among the best in terms of net income, the Commission on Audit (COA) said in its report for fiscal year 2007.
According to the COA report, Cebu spent P1.73 billion in 2007, the ninth highest among the 130 cities of the country.
Meanwhile, the three newest cities in Cebu made do with modest revenues, spending less and receiving the smallest Internal Revenue Allotment (IRA) shares.
The IRA is a local government’s share of revenues from the National Government, and is based on land area and population.
Bogo, Naga and Carcar were among those with the lowest IRA share, largely because they were still on their first year as newly converted cities.
While Cebu City, with P784.56 million, ranked seventh among those with the biggest IRA shares, Bogo ranked fourth among those with the lowest IRA shares, with P61.15 million.
The City of Naga was sixth lowest with P66.19 million, while Carcar was ninth lowest with P72.71 million.
In terms of spending, Carcar was eighth lowest, while Bogo was ninth lowest.
The same COA report showed that Mandaue City saved 30 percent (P229.91 million) of its 2007 revenue (net income as a percentage of total income). Cebu City did not appropriate 29 percent (P711.29 million) of its gross income.
Talisay City’s net income in 2007 was 27 percent (P99.78 million) of its total income; while that of Lapu-Lapu City was 24 percent (P174.39 million.); Bogo, three percent (P3.49 million); Carcar, seven percent (P6.4 million); and Naga, 11 percent (P12.34 million).
In an interview, Cebu City Administrator Francisco Fernandez said that while the City saved over P700 million in 2007, it used the amount for capital expenses, as the annual allocation was for the operational expenses of the City Government.
In particular, he said, the savings were used for supplemental budgets, which include the payments for its foreign loan.
Assistant City Treasurer Emma Villarete earlier said that while the City allocated the full estimated amount for its 2009
foreign loan, it only charged half of the amount in the annual budget during the past years.
The City pays its loan installments every February and August. Villarete said the City used to pay the second payment of the year using supplemental budget allocations.
For Bisaya stories from Cebu. Click here. (November 3, 2008 issue)
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