THE Cebu City Council has approved the city’s proposed 2026 annual budget amounting to P13.4 billion, focusing on streamlined spending, manpower rationalization, and fiscal sustainability.
The proposed budget, submitted by Mayor Nestor Archival, will fund the operations of various city departments and offices from Jan. 1 to Dec. 31, 2026.
The budget reflects Cebu City’s development priorities as outlined in its Annual Investment Program (AIP), with funds allocated across key sectors.
General Public Services will receive P6.53 billion or 48 percent of the total budget, while Social Services will get P3.96 billion or 29 percent.
Economic Services will get P762 million (six percent), and a Reserve for Calamity is set at P675 million (five percent).
An allocation of P769 million or six percent was given to the Local Development Fund, Aid to Barangays (P751 million or four percent), and Miscellaneous Purposes (P20 million or 0.15 percent).
By expense category, the largest portion will go to Maintenance and Other Operating Expenses (MOOE) at P8.53 billion, accounting for 63 percent of the budget.
Personal Services have been allocated P3.4 billion (25 percent), while Capital Outlay will receive P1.54 billion (11 percent).
Cebu City expects total revenues of P13.5 billion to finance the budget. This includes Tax Revenue of P5.4 billion (38 percent), Non-Tax Revenue of P3.23 billion (23 percent), and a National Tax Allotment of P3.84 billion (27 percent).
Additional sources include a share from Ecozone of P600 million (four percent), Hospital Income of P275 million (two percent), and Market Income of P150 million (one percent).
The Committee on Budget and Finance conducted extensive budget hearings in October and November 2025, reviewing submissions from all city departments.
Committee Chairman David Tumulak and members Edgardo Labella II, Winston Pepito, and Alvin Arcilla noted significant reductions in certain budget items due to underutilization in 2025 and the lack of a detailed justification.
Key amendments include stricter regulations on manpower reinforcement, requiring all MOOE allocations for job order personnel to be supported by detailed documentation and approved by the Sangguniang Panlungsod.
Hiring for security services is now limited to licensed private security guards with valid licenses issued by PNP-SOSIA.
Procurement of drugs and medicines will require prior approval, with dispensation handled exclusively by licensed pharmacists. The City Health Department’s allocation has been increased by P5 million to support the Long Life Program.
Additionally, the release of funds for Aid to Barangays and youth programs now requires certification from barangay officials and approval from the City Mayor.
Several departments saw reductions in MOOE and Capital Outlay allocations, including the Barangay Affairs Office, City Environment and Natural Resources Office, and Cebu City Sports Commission, among others, primarily due to the underutilization of their 2025 budgets.
Meanwhile, certain capital outlays, such as vehicle procurement for the Cebu City Police Office and logistical support for the City Council, were increased.
The amended General Fund for 2026 stands at P13.414 billion, with a total unappropriated balance of P85.44 million.
Mandaue
Meanwhile, the Mandaue City Council has approved the city’s P4.5 billion budget for 2026, according to City Administrator Attorney Gonzalo “Sally” Malig-on.
“It was already passed yesterday, Dec. 1,” Malig-on confirmed, adding that the budget supports the priorities of Mayor Thadeo Jovito “Jonkie” Ouano as earlier stated in his inaugural address.
Among the key priorities for next year are the digitalization of frontline services, starting with the Assessor’s Office, followed by the implementation of a citywide ID system.
Improvements for Pajara Park, flood management projects, and other city programs are also included in the allocation.
“We are happy because the City Council supported the approval of the budget, and it was passed much earlier than we expected,” Malig-on said.
He said Mandaue City may be among the first local governments in the region to have its budget for next year approved.
Malig-on said the amount remains the same as the 2025 allocation, based on the city’s historical performance.
Mandaue City is targeting a P4.5-billion collection for 2026.
“The budget is achievable. And even in the event that we fall short, it will still be manageable because we already have strategies to minimize costs,” he said.
He attributed the smooth approval of the budget to transparency in the process.
“There’s nothing to hide. The mayor is transparent with the Council, and there were budget hearings as well. So overall the process went smoothly,” Malig-on said. / CAV, ABC