CEBU City Mayor Nestor Archival has proposed a P13.47 billion annual budget for 2026, which he endorsed to the Cebu City Council on Oct. 7, 2025. The proposal highlights programs focused on digitalization, green urban development, disaster resilience, and enhanced social services.
Smaller budget
The proposed P13.47 billion budget is notably smaller than in previous years. It is around P4 billion less than the 2025 proposed budget and P2.13 billion lower than the approved P15.6 billion budget for 2025.
This reduction is linked to the City’s fiscal situation. Archival, who assumed office on June 30, reported that the City faces a P6 billion budget deficit. This deficit stems from a mismatch between expenditures and actual revenue collection; for example, the 2025 budget stands at P15.6 billion, but expected revenue is only P10 billion.
In his “First 100 Days” report, Archival said his administration had already reduced the deficit by P832 million in just three months. The 2026 proposal is based on the City’s projected income of P9.5 billion to P11.5 billion, which may be the lowest since 2020.
Fiscal discipline push
In his endorsement letter to the council, Archival said that the City remains a “dynamic hub” for commerce and culture. He said the proposed budget focuses on inclusive growth, efficient public services and sustainable development.
The administration is framing the 2026 budget as a move toward fiscal discipline. Archival said the aim is to align appropriations with actual revenues, marking a shift from previous years’ spending patterns that lacked funding support.
“The City Government’s goal is to adopt realistic budgeting and ensure that every peso spent directly benefits the people of Cebu City,” he said.
Priorities: Social services
and infrastructure
Social services remain the top priority, receiving 29 percent of the total allocation, or P3.96 billion. Key items in this sector include:
P787.86 million for the Department of Social Welfare and Services (DSWS);
P598.46 million for the City Health Department’s field programs;
P354.5 million for the City Hospitalization Assistance and Medicines Program; and
P5.5 million for the Cebu City Nutrition Office’s first 1,000 days program.
Other key programs mentioned by Archival include streamlining scholarship requirements, providing round-the-clock public library access, pilot farm demonstrations, rice subsidies, river desilting and updates to the City’s drainage master plan.
Key projects; major allocations
For capital outlays and infrastructure, the City has allocated P30 million for the installation of solar panels in City-owned buildings. The Department of Engineering and Public Works has set aside P76.56 million for drainage system maintenance and P50 million for procuring heavy equipment to support flood control.
Other major allocations include:
Aid to hospitals: P767 million;
Aid to barangays: P750.88 million;
Disaster Risk Reduction and Management Fund (calamity fund): P675 million;
Scholarship program: P375 million;
Peace and order program: P386.87 million;
Management Information and Computer Services: P123.14 million;
Socialized housing: P100 million for construction and P10 million for lot acquisition;
Digital highways in Cebu City Hall: P20 million;
Recovery and rehabilitation infrastructure works: P20 million;
Smart operations and management systems: P15 million;
Materials recovery facility (MRF) in barangays: P10 million;
Water system project (BJMP): P10 million;
Climate change adaptation and mitigation projects: P5 million; and
Farm-to-market roads: P1.2 million.
What’s next
The P13.47 billion budget proposal is now in the hands of the City Council. It will undergo deliberations and potential amendments by the councilors before it can be approved for 2026. / EHP