THE proposed 2026 annual budget for Cebu City has been slashed to P13.3 billion, after the City Council’s committee on budget and finance flagged questionable manpower requests, vague hiring descriptions and unclear procurement plans submitted by several City Hall offices.
Mayor Nestor Archival originally proposed a P13.46-billion budget for 2026.
But in its report submitted on Tuesday, Nov. 25, 2025, the committee said the General Fund Proper was reduced by P21.83 million from the original P11.466 billion, while Special Accounts were lowered by P17.7 million from the initial P1.999 billion.
According to the committee, the adjustments follow Archival’s fiscal policy direction of cutting unnecessary spending, tightening hiring rules and prioritizing essential services and social programs.
The committee recommended that any hiring charged under the Maintenance and Other Operating Expenses must first get council approval and must be tied to a specific program.
During the hearings, officials noted that several offices requested several job order (JO) workers without stating what these workers would do, what qualifications were needed, or where they would be assigned.
The panel also ordered that all purchases of computers, ICT systems, vehicles, electric vehicles and heavy equipment should be centralized under the Management Information and Communications Technology Services or placed under the correct accounts. This move aims to avoid duplication and audit problems.
Security service procurement was also scrutinized.
The committee required all offices to comply with Republic Act 11917 and PNP-SOSIA licensing, especially those hiring security guards under the Peace and Order Program, the General Services Office and city markets.
Reduced budgets
The committee removed or reduced funds in offices where budgets were found to be underutilized, redundant, or poorly justified.
Barangay Affairs Office: Lost about P19.5 million due to large, poorly explained manpower requests for cultural programs.
City Planning and Development Office: Lost P12.76 million due to unclear items and overstated project costs.
City Health Department: General Administration and Field Offices saw a combined reduction of P4 million, specifically where JO hiring lacked sufficient basis.
City Agriculturist and Cenro: Saw cuts amounting to P11.7 million due to overlapping projects and vague manpower requests.
Division for the Welfare of the Urban Poor: Lost about P7.7 million.
Operation of City Markets: Reduced by around P10 million due to issues in security service procurement.
Other reductions were made in the Cultural and Historical Affairs Office, Cebu City Sports Commission and Cremdec.
“In line with the fiscal policy direction of Mayor Nestor Archival, emphasizing a streamlined budget, reduction of unnecessary expenditures and manpower and a balanced financial framework to ensure the appropriate utilization of funds, the committee finds it imperative that the proposed Annual Budget for CY 2026 be amended accordingly,” read part of the committee report.
Despite the overall cuts, the committee approved increases for programs considered essential.
Cebu City Police Office: Allocated an additional P10 million for the purchase of vehicles.
General Services Office: Granted an additional P12.76 million to support logistics and vehicle maintenance for various city departments.
Cebu City Wildlife Rescue Facility: Received a P700,000 increase for animal care and rescue operations.
Long Life Program: The City’s maintenance medicines distribution program received a P5-million augmentation sourced from savings, earmarked for hiring licensed pharmacists and ensuring proper medicine storage and dispensing.
The added funds will be used to hire licensed pharmacists and ensure proper storage and dispensing of medicines.
The committee also directed barangay disaster response personnel to secure certification from their barangays and required youth development programs under SK funds to receive approval from both the mayor and the council before release.
With the adjustments, the proposed budget for 2026 is now
P13.3 billion.
The revised proposal will be forwarded to the council for further deliberation and approval before the year ends. / CAV