THE Mandaue City Government will implement cost-cutting measures across several programs, activities, and projects following reports of a budget deficit caused by lower-than-expected revenue collections.
City Treasurer Claire Cabalda explained the situation in a meeting with department heads, stressing the need for careful spending to ensure that expenditures remain within the city’s actual collections for the year.
“Possibly, our target collection may fall short against our projections. The worst-case scenario is if our actual expenditures exceed what we have collected. That is what we want to avoid. If ever we cannot meet our target this year, at least our expenses will still be within the actual collection, and we will not overspend beyond the money collected,” Cabalda said.
She said that while some activities may need to be held back, city operations will not be hampered.
“So as early as now, we are trying to control. Some expenses can be held or postponed, but this will not hamper the operations of offices,” she added.
Cabalda also encouraged offices to maximize available resources rather than incur new costs.
“For trainings or seminars, if possible, we should initiate them within the city or within the offices themselves, using what is available. This way, we can reduce costs, including avoiding unnecessary rentals or leasing of venues,” she said.
The City Treasurer noted that department heads now have a clearer understanding of the financial controls being imposed.
“In a way, at first they did not fully understand why there had to be such a sudden change in the processing of purchase requests. But with the meeting this morning, they now understand that there is a need to control because our money, our cash, is not unlimited,” Cabalda said.
She clarified that while the City Council has passed budget appropriations, these are not automatically backed by actual cash since they still depend on the city’s collections.
“The budget appropriation is not yet backed up by cash. For example, parents may promise to buy their child shoes once a bonus arrives. But if the bonus does not come, then the shoes cannot be bought. That is how appropriations work -- if the city does not collect the projected revenues, then the funds cannot be released,” she said.
“There is no approved 2025 budget yet, but that is what was said, that there will be a status quo or retainment of the P4.5 billion,” she added.
Cabalda reported that as of now, the City has collected around P2.9 billion, with an available cash balance of approximately P300 million.
She assured that austerity measures are meant to prevent a deficit by year’s end.
“We will not spend more than our actual collection. That is our priority,” she said. (ABC)