Cebu City trims 2021 budget, but allots more for vaccines, meds
THE Cebu City Council on Wednesday, Dec. 23, 2020, approved a P10 billion budget for 2021, more than P800 million lower than the proposed spending plan and P400 million lower than the 2020 budget.
While the Council disapproved some unnecessary and non-urgent expenses, it increased the City Health Department budget for the purchase of anti-flu and anti-pneumonia vaccines and medicines to P400 million from the proposed P1.5 million.
Among the biggest allocations are P900 million for the senior citizen financial assistance program, P796 million as aid to the barangays and P565 million for the Department of Social Welfare and Services (DSWS).
Cebu City Councilor Raymond Alvin Garcia, chairman of the committee on budget and finance, said around P830 million was slashed from the P10.8 billion proposed by the executive department.
He said some members of the Council pointed out that some proposed expenditures were not necessary nor urgent.
Vice Mayor Michael Rama, in an interview after the two-hour regular session Wednesday, described the approved budget as a “need-based budget” and said he was satisfied with the final version.
He said some members of the Council wanted an optimized expenditures program.
Mayor Edgardo Labella, in an interview, said he trusted the objectivity of the members of the Council.
“If they saw it that way, then I’m okay with that. I have no problem with that,” Labella said.
“Overall, I am satisfied,” he said.
Major cuts
Labella’s proposed confidential funds were among those cut. Instead of the proposed P30 million, Labella’s office will get only P20 million in confidential funds.
Garcia said the biggest cut was the P250 million proposed for the Phase 3 implementation of the artificial intelligence traffic system (AITS).
He said there was no need to set aside funds for Phase 3 because Phase 2 of the program has not even started yet.
The proposed P200 million budget for the economic recovery program was reduced by half to P100 million because there is still an existing P100 million fund for the program under the third supplemental budget approved in June 2020.
The P280 million budget for the renovation of the Legislative Building of City Hall and establishment of the archives building was cut to P155 million.
The approved budget for garbage collection under the Department of Public Services (DPS) was P500 million, P100 million lower than the proposed P600 million.
Cebu City Councilor Alvin Dizon observed that the budget for the purchase of new motor vehicles for three offices was also removed.
The executive department had proposed allocations of P12 million, P4.5 million and P5 million for the purchase of new motor vehicles for the offices of the mayor, vice mayor and city administrator, respectively.
Other items that were cut from the approved budget were not specified.
Dizon, in a corollary motion adopted by the Council, requested the executive department to regularly submit a report on pandemic response expenditures under the 2021 budget.
The Council also requested the civil society members of the Cebu City Development Council (CCDC) to “actively” monitor the execution of the 2021 budget.
Labella welcomed the Council’s request, saying it promotes transparency and acknowledging that it is the Council’s job to protect public funds.
Supplemental budget
The approved budget contains an allocation of P371 million for the South Road Properties (SRP) loan payment.
Garcia said this will be augmented by a supplemental budget that will be passed in January.
He said they will allocate the P830 million slashed from the 2021 expenditures program for the supplemental budget so the City can pay P1 billion for the SRP loan.
Garcia said his committee had taken into consideration around 95 percent of the recommendations made during the two-week budget hearing.
Dizon had objected to the proposed P120 million budget for the establishment of a command center, saying it is not urgent.
Dizon previously said he was in favor of the establishment of the command center, but the allocations should be staggered.
The City passed four supplemental budgets in 2020.
Supplemental budget (SB) no. 1, amounting to P55 million, covered the cash incentives for City Hall employees in celebration of the Cebu City Charter Day in February.
SB 2, amounting to P1 billion, covered the purchase of personal protective equipment (PPE) in March as part of the City’s coronavirus disease 2019 (Covid-19) response.
SB 3, amounting to P1.9 billion, was passed to augment the City’s expenses in its fight against Covid-19.
The recently approved SB 4, amounting to P745 million, was used to finance the hazard pay and cash incentives, among others, for City Hall and barangay workers. (JJL)