SOME 2026 budget proposals from Cebu City departments are deemed unrealistic and impossible to implement due to excessive funding requests that surpass the city’s projected income, Councilor Dave Tumulak said.
Tumulak, who chairs the City Council’s committee on budget and finance, noted that several departments submitted spending plans that far exceed what the City can afford, calling for more realistic and achievable proposals.
The committee has so far conducted budget hearings with eight to 12 departments, assessing their proposed allocations for next year. While some requests were reasonable, others were far beyond what the City can realistically afford under its current fiscal situation.
He reminded department heads not to expect that all their requests would be granted, noting that the 2026 budget will depend largely on whether the City Treasurer’s Office (CTO) meets its revenue targets for 2025. Tumulak stated plainly, “We’ve asked the department heads not to expect that all their requests will be granted.”
The City still awaits the fourth-quarter report to determine if this year’s revenue goals will be achieved. However, Tumulak declined to name the specific departments or disclose their proposed budgets, saying he wanted to focus on overall fiscal discipline rather than singling out any office.
Among the concerns raised during the hearings was the growing number of job order employees and additional requests for casual positions. For 2026, the committee aims to prioritize funding for public services rather than expanding manpower. Tumulak clarified that this year’s budget hearings differ from previous ones, emphasizing that the discussions are not confrontational but focused on encouraging realistic spending plans.
He said there is a possibility that the City’s proposed P13.47-billion budget for 2026 will be reduced, depending on this year’s actual income performance. If the CTO fails to meet its revenue targets, the local government will have to adjust its spending plan to avoid a deficit.
Tumulak added that some fiscal measures intended to boost revenue, such as adjustments in real property taxes and taxation on machinery, were not implemented after related ordinances were canceled. This, he said, has contributed to the City’s weak revenue collection. Furthermore, many departments failed to fully utilize their 2025 budgets, resulting in large unspent balances.
“Based on the City Treasurer’s Office report, out of the P17-billion annual budget last year, only P11 billion was actually spent,” Tumulak noted.
Among the departments with budgets likely to be approved early are the Department of Manpower Development and Placement and the Cebu City Medical Center (CCMC), which submitted what Tumulak described as “doable and necessary” proposals. He clarified, however, that the council can only make cuts or adjustments within each agency’s own allocation; it cannot transfer funds between departments.
Mayor Archival’s budget proposal
Meanwhile, Mayor Nestor Archival proposed a P13.47-billion annual budget for 2026, which he endorsed to the City Council on Oct. 7. The proposal focuses on digitalization, green urban development, disaster resilience and enhanced social services.
This amount is notably smaller than previous figures: P4 billion less than the 2025 proposed budget and P2.13 billion lower than the approved P15.6-billion budget for 2025. This reduction reflects the City’s fiscal constraints. Archival earlier revealed that Cebu City is facing a P6-billion budget deficit due to a mismatch between expenditures and actual revenues. While the 2025 budget stood at P15.6 billion, expected revenue was only around P10 billion.
In his “First 100 Days” report, Archival said his administration reduced the deficit by P832 million within three months. The 2026 proposal, he said, is anchored on a projected income of P9.5 billion to P11.5 billion — possibly the City’s lowest since 2020. Archival emphasized that his administration aims to promote fiscal discipline, ensuring that appropriations align with actual revenues, stressing that every peso spent must directly benefit the people of Cebu City.
Social services will take the largest share of the proposed budget, receiving P3.96 billion (29 percent) of the total allocation. Major programs include P787.86 million for the Department of Social Welfare and Services, P598.46 million for the City Health Department’s field programs and P354.5 million for the City Hospitalization Assistance and Medicines Program.
For infrastructure and capital outlays, P30 million is earmarked for installing solar panels in City-owned buildings, P76.56 million for drainage maintenance and P50 million for heavy equipment to support flood control.
Other major allocations include P767 million in aid to hospitals, P750.88 million to barangays, P675 million for disaster risk reduction and management, P375 million for scholarships and P386.87 million for peace and order programs.
The proposed budget will undergo further scrutiny and amendments by the City Council before final approval. / CAV