CEBU Province estimated receipts for 2026 declined by P10.12 billion compared with 2025’s projections, a massive drop largely due to inflated revenue estimates made during the previous administration of former governor Gwendolyn Garcia.
Under the current administration, Gov. Pamela Baricuatro proposed an P11.9 billion budget for 2026, which she described
as realistic.
The most significant adjustment involved Basic Real Property Tax, which dropped from a projected P4.19 billion in 2025 to P650 million in 2026, or a reduction of P3.54 billion. Revenues from the tax on sand, gravel and other quarry products were also reduced by P722.9 million, while supervision and regulation enforcement fees fell by
P229 million.
The committee report of the budget and appropriation committee noted that several large revenue items included in the 2025 budget were removed entirely from the 2026 projections due to the absence of assured funding.
These removed items include P5.4 billion in extraordinary receipts from grants, donations and aid and P6.5 million in shares from government-owned and controlled corporations such as the Philippine Amusement and Gaming Corp. and the Philippine Charity Sweepstakes Office.
Over-allocation
According to the committee, the overestimation of revenues in 2025 led to the over-allocation of funds to programs, projects and activities, resulting in budget items that existed only “on paper” without sufficient funding for implementation.
“This overestimation and bloating of the estimates have caused the over-allocation of budget to the 2025 programs, projects and activities. This bloating of the budget results in a scenario where there is still a budget ‘on paper’ for specific PPA (programs, projects and activities) but no actual sufficient funds to support or implement the same,” reads a portion of the report.
The committee warned that any planned budget augmentation under such conditions would be ineffective.
According to the committee report, Provincial Budget Officer Danilo Rodas and Provincial Treasurer Atty. Roy Salubre acknowledged during budget hearings that the sharp reduction in projected funding sources for 2026 stemmed from a deliberate move to adopt more realistic income estimates, after revenues under the 2025 budget were found to be bloated.
“Further, both the provincial budget officer and the provincial treasurer has admitted overestimation on the 2025 provincial budget,” reads a portion of the report.
The committee on budget and appropriation said it has identified several proposed allocations in the 2026 budget that require reduction or tempering due to excessiveness or lack of justification, as it aligns spending with the current administration’s policy of fiscal discipline and prioritization of essential services.
SunStar Cebu messaged Salubre on Tuesday, Dec. 16, but he said he is currently in a meeting. / CDF