THE Mandaue City Government has begun implementing cost-cutting and austerity measures across all departments to keep spending in check and avoid overshooting its revenue collections for the year.
Acting City Treasurer Claire Cabalda said the move was necessary after the City registered a recurring deficit of around P200 million annually over the past two years.
She stressed that core services for Mandauehanons will not be affected despite the tighter spending controls.
“We want to make sure our expenses do not exceed actual collections. If our target revenues fall short this year, at least our spending will still remain within the amount collected,” Cabalda explained in a meeting with department heads on Tuesday, Sept. 16, 2025.
Records show that as of August, the City had collected P2.9 billion, with a cash balance of about P300 million, against its P4.5-billion target for the year.
Expected inflows for the remaining months include P460 million from the National Tax Allotment, P60 million from real property taxes and P100 million from business taxes.
Among the austerity measures being rolled out are the suspension of some year-end activities, restrictions on travel, trainings and seminars and the use of city-owned facilities instead of renting external venues.
Mayor Thadeo “Jonkie” Ouano also urged practical spending, reminding offices to scale down activities without completely removing them.
“The important thing is, we can save. If we can hold meetings and seminars within Mandaue, then let’s have it in Mandaue. We won’t eliminate them all, but we’ll tone it down,” Ouano said in Cebuano.
Cabalda admitted that one of the challenges lies in the gap between budget appropriations and available cash.
She likened appropriations to parents promising to buy shoes for their child if they receive a bonus — if the bonus does not come, the purchase cannot be made.
She said department heads now better understand why stricter controls are needed.
“At first, some did not fully grasp why purchase requests had to be limited. But after the meeting, it’s clearer to them that our funds are not unlimited and we have to prioritize essential needs,” she added.
The City Government is currently reviewing purchase requests and prioritizing only those that are deemed essential to keep operations running.
“Our priority is simple we will not spend beyond our actual collections,” Cabalda stressed. / ABC