DESPITE a projected P6.8 billion budget deficit, Cebu City collected P7.6 billion in revenues from January to September 2025, a six percent increase over the same period last year.
Of this amount, P1.9 billion was generated between July and September, according to City Treasurer Emma Villarete.
Villarete credited Vice Mayor Tomas Osmeña’s cost-saving measures and the ongoing tax amnesty for keeping the City on track for its P10 billion annual target.
In an interview on Friday, Oct. 10, 2025, Villarete said no new revenue or tax ordinances have been enacted that could significantly boost collections.
Addressing deficit
To address the deficit, the City Government maximized other available funds, including allocations from the Philippine Amusement and Gaming Corp. (Pagcor). Unused funds from last year’s City’s Hospitalization Assistance and Medicines Program were also redirected to Pagcor-related expenditures.
Villarete said Osmeña’s cost-saving measures helped support key programs such as senior citizen assistance and road asphalting projects.
While there were no budget cuts across departments, her office has been closely verifying purchase requests to ensure proper spending.
Departments that planned to purchase equipment this year were allowed to do so, but under the condition that next year’s allocation for similar items may be reduced. This measure aims to help the City recover financially and lessen the deficit by 2026.
Villarete said data analytics show potential collections could reach P11 billion by year-end.
Eliminating unecessary expenses
City Hall has eliminated unnecessary expenses such as meals during meetings and hired additional job order personnel to issue notices of tax delinquencies in barangays, encouraging more taxpayers to settle their obligations.
The two-year tax amnesty on business and machinery taxes continues to provide relief and promote compliance among taxpayers.
Earlier, Mayor Nestor Archival revealed the City’s forecasted deficit has ballooned to P6.8 billion. While the City has around P9 billion in available funds, projected expenditures could reach P19.7 billion, resulting in the shortfall.
As of June 2025, the City Government had 8,569 employees, with a total salary expense of P1.2 billion for the remaining months of the year. / CAV