THE Cebu Provincial Government plans to propose a 2026 annual budget of P10 to P11 billion. This amount is less than half of the P25 billion budget approved for 2025.
Gov. Pamela Baricuatro said the reduction is necessary because the previous budgets were “bloated” and far beyond what the province could actually afford.
Big question
Why is the 2026 budget only half the size of last year’s, and what will this mean for Cebu residents?
How big is the cut
The proposed budget for next year is a 56 to 60 percent decrease from this year’s budget.
It also marks a sharp departure from the trend of increasing annual budgets under the previous administration of former governor Gwendolyn Garcia. Cebu’s annual budgets under the previous administration rose steadily: from P18 billion in 2022 to P20.15 billion in 2023, and P23 billion in 2024.
The problem
Baricuatro said provincial revenues average only about P10 billion a year. The previous budgets assumed the Province could spend far more than it was earning.
Baricuatro, who took office in 2025, has criticized the old budgets as “wishful thinking.”
“We have to live within our means,” Baricuatro said to the media on Wednesday, Aug. 27, 2025.
Why the cut
Living within means. Baricuatro said Cebu must match its spending with what the Province actually earns each year. Provincial Administrator Joseph “Ace” Durano, for his part, added that the previous administration’s plan was unrealistic because it relied on more money than the province had.
Debt and obligations. The upcoming budget will include a program to pay off debts. Part of the funds will go toward legitimate claims that the province still owes, according to Assistant Provincial Administrator
Aldwin Empaces.
Focus on priorities. Spending will shift toward essential services such as health, education, food security and livelihood programs. Hospitals will be the first to receive higher allocations once budget deliberations begin.
Who’s affected
Residents: May see fewer large-scale projects but potentially better funding for hospitals, schools, and food programs.
Suppliers and contractors: Some may have to wait for debts to be cleared.
Investors: Baricuatro’s team hopes to attract them back to raise revenues and expand the budget in future years.
What happens next
Budget hearings: Department proposals are in. Deliberations begin in September.
Approval process: The Provincial Board will review and approve the final budget before the year ends.
Future outlook: If new investments and revenues increase, Cebu may expand spending again in later years.
The proposed P10–11 billion budget is a reset. It reflects Cebu’s actual income, prioritizes essential services, and attempts to pay off old debts, according to Baricuatro’s team.
Instead of big-ticket promises, Baricuatro is betting on a leaner, more realistic financial plan. / CDF