CADIZ City will suffer a budget cut of at least P220 million by next year because of the 14.7 percent reduction in the National Tax Allocation (NTA), Mayor Salvador Escalante said over the weekend.

Despite that, Escalante stressed that he will not stop the ongoing projects of the city government like the sports oval, school buildings and road improvements among others.

However, what will be affected are the relocation of the Bureau of Jail Management and Penology (BJMP) and the construction of the city hospital, he admitted.

Escalante noted that he will discuss the matter with Vice Mayor Lilia Decolongon and members of the Sanggunian Panglunsod.

"We will explore another avenue to source funds [for these projects]," he said, adding that the budget cut is just temporary.

Earlier, Caddiz City government has already implemented cost cutting measures.

He noted that only the mayor’s office will have the maintenance and other operating expenses (MOOE) budget next year while other departments will have to request if they want to purchase equipment and computers.

As to the city hospital, Escalante said they are studying the option of bank loans and would prepare the site at their own expense.

They will have to put up a fence at the site using their resources, too, and wait up to 2023 for the allocation of the budget.

Escalante said he also did not touch the fund for city's assistance to 22 barangays.

“We will sustain the basic services like water pumps and street lights delivered through the barangays,” he assured.

Considering the circumstances, the mayor said that he doesn’t want the projects to be hampered; hence, the city government will just have to absorb [the situation].