THE Cebu Provincial Government will use its P8.9 billion revenue in 2025 to realign priority programs and accelerate social and infrastructure development under stricter fiscal discipline and realistic budget planning, an official said Friday, Feb. 27, 2026.
Assistant Provincial Administrator Aldwin Empaces said the P8,907,461,830.79 collected from Jan. 1 to Dec. 31, 2025, will guide the refinement of priority programs, projects and activities and align investments with actual income.
Cebu Province faces an estimated P3 billion gap between its P8.9 billion revenue in 2025 and its P11.9 billion approved budget for 2026, based on a direct comparison of the two figures.
However, the difference does not automatically indicate a deficit.
“Including the continuing unspent funds of 2025, or savings, plus National Government funding for this year. It may even exceed projections, which would mean more savings for 2026 that can be added to the 2027 budget,” Empaces said when asked where the province would source additional funds.
“So far, based on projections, as we speak, the P11.9 billion funds for 2026 are balanced,” he added.
The 2026 budget may also be supported by higher projected collections, National Government assistance or supplemental appropriations allowed under Republic Act (RA) 7160, or the Local Government Code of 1991.
Empaces said Gov. Pamela Baricuatro has set up a monthly budget monitoring system to keep track of the budget performance of each office and department to check the efficiency of spending their approved funds.
Sources of revenue
Data from the Provincial Treasurer’s Office showed that most of the total came from external sources, primarily the National Tax Allotment amounting to P6,284,205,149. Additional shares included P1.29 million from the Philippine Charity Sweepstakes Office and P1.85 million from other national wealth collections.
Local sources contributed P2.62 billion. Under the general fund-proper, tax revenues reached P512.43 million, including P268.63 million in real property tax, P147.60 million in business tax and P96.19 million in other local taxes.
Non-tax revenues totaled P243.47 million, while economic enterprises generated P250.89 million and other receipts reached P335.36 million.
Provincial hospitals earned P753.47 million in service and user charges. The two provincial bus terminals generated P103.40 million, and the Cebu Provincial Inter-LGU Waterworks System earned P18.16 million.
The Special Education Fund reached P402.87 million, largely from real property taxes.
Annual budget
Empaces said the revenue figures show that the administration of former governor Gwendolyn Garcia had a “bloated and unrealistic” P25 billion annual budget for 2025.
For 2026, the Provincial Board approved a P11.9 billion budget on third and final reading during a special session on Jan. 8, 2026. Signed by Baricuatro, the budget ordinance serves as the legal authority for spending and aligns with revenue projections. The 2026 budget is 52.40 percent lower than the 2025 allocation.
Under RA 7160, adjustments to the P11.9 billion budget require a new ordinance from the Provincial Board (PB). If revenues exceed projections, the PB must pass a supplemental appropriations ordinance under Section 321.
Under Section 336, the governor may be authorized to augment deficient items using actual savings within the same expense class. Spending is limited to actual cash collections, and obligations cannot exceed revenues. / CDF