CEBU City Mayor Nestor Archival on Tuesday, July 8, 2025, said the City Government is now facing a projected budget gap of P6.843 billion, significantly higher than the initial P2–P3 billion estimate made earlier this month.
Speaking at the inaugural session of the 17th Sanggunian Panlungsod, Archival said that as of June 30, the City had P9.360 billion in deposits, with another P3.512 billion expected in collections for the rest of the year — a total of P12.873 billion in available funds.
However, the City also has projected expenses of P19.716 billion, creating a shortfall of over P6.8 billion, he said.
Among the major spending items cited are P1.258 billion for personal services, P497 million for the salaries of job order (JO) workers from July to December, P542 million for senior citizen aid, P94 million for persons with disabilities and P3.719 billion for various aids, subsidies and supplies. Also included are P2.858 billion in capital outlays and P2.033 billion in accounts payable.
Before the inaugural session, Archival presented to the reporters a document titled “Financial Status (with projection) for current year 2025” signed by the Emma Villarete from Internal Audit Service Office.
Garcia rebuts claim
Former mayor Raymond Alvin Garcia, who served until June 30, strongly refuted the claim during a press conference on the same day, calling the budget deficit figure a “lie” and accusing the new administration of using it to justify hiring freezes, especially for JO workers.
“As of last year, we had a deposit of P12.1 billion. Of course, over time, that amount has changed. From the last time I checked, it’s now around P11 billion,” Garcia said.
He also pointed to his administration’s recognition for achieving P5.986 billion in locally sourced revenue and challenged the current officials to present audited documents proving the deficit.
Garcia maintained that available funds — including both the general and special purpose funds — were enough to support City operations when he left office.
Audit speculation
Garcia also addressed Vice Mayor Tomas Osmeña’s recent Facebook post thanking former Commission on Audit commissioner Heidi Mendoza for supposedly volunteering to audit Cebu City’s finances.
Garcia dismissed the post as “fake news,” saying Mendoza had traveled to Cebu for personal reasons. He referenced Mendoza’s own Facebook post in which she clarified that she was in the city to attend a friend’s retirement event and visit supporters.
“I remain committed to strengthening citizen participation in ensuring good governance and exacting accountability, but I will not involve myself in local politics,” Mendoza wrote.
As of this writing, no official audit findings have been released by the City Treasurer’s Office to support or refute either side’s financial claims. / EHP