THE 20th City Council approved the annual budget of Davao City for 2024, totaling over P12 billion, during its 45th regular session on December 1, 2023.
The P12,735,450,908 budget represents a 7.51 percent increase from the previous year’s P11,846,005,557.
According to Section 458 of the Local Government Code of 1991, also known as Republic Act Number 7160, the local legislative body is mandated to approve the annual budget. This budget is crucial for funding the city's specific initiatives, programs, services, and future endeavors.
Budget sources
The approved budget comes from local sources, which include local taxes, service income, business income, and other incomes, totaling P5,024,966,000.
The income from the City Economic Enterprises (CEE) operations is part of the local sources.
Moreover, around P65,000,000 comes from the economic zone, and P7,445,964,908 from the National Tax Allotment, higher by P434,969,551 compared to last year.
Meanwhile, the budget approved for Davao City in 2024 is P12,735,450,908, but the appropriated budget is P12,679,918,553, resulting in an unappropriated balance of P55,532,355.
During the ISpeak media forum on Thursday morning, January 25, 2024, at the Davao City Investment Promotion Center (DCIPC) Conference Room, Maximo Macalipes Jr., officer-in-charge of CEE, reported a successful collection of 99.48 percent of their target for 2023, which is higher compared to 2022.
According to CEE data, there's been a 12.8 percent increase in revenue, amounting to P22.7 million more than in 2022.
In previous years, the office's revenue reached 99.32 percent of the P185.63 million target in 2019, 66.77 percent of the P197.46 million target in 2020, 65.28 percent of the P215.14 million target in 2021, 88.42 percent of the P200.98 million target in 2022, and 99.48 percent of the P201.53 million target in 2023.
Market operations contributed significantly, earning P128,176,406.20 in 2023.
According to CEE data, revenue from slaughterhouse activities amounted to P32,761,194.05, night markets generated P20,229,536.80 and cemetery operations contributed P19,312,232.81.
Market operations exceeded the P112.6 million target, achieving 113.81 percent, while other economic businesses surpassed the goal with 198.33 percent of the P10.2 million target.
Budget priority
Councilor Myrna Dalodo-Ortiz, chairperson of the committee on finance, ways and means, and appropriations, underscored the budget's alignment with Mayor Sebastian “Baste” Duterte's 12-point agenda.
The 12-point agenda includes poverty alleviation, infrastructure development, sustainable environment, health, education and human resource development, agriculture and agribusiness, business and industrial support development, transportation planning, and traffic management, peace and order, disaster risk reduction and mitigation, good governance through innovative information and communication technology (ICT), and tourism and development and support services.
“These key priority areas reflect the Duterte initiatives and projects for 2024 of the City Government of Davao, which adopt the theme, ‘Digitalization and Usage of Technology for an Enterprising Regime that is Transparent and Efficient’,” the ordinance states.
Appropriation
According to the committee report, around P4,637,262,603 has been allocated for the City Mayor's Office (CMO) activities. This allocation, the highest among others, covers appropriations for general administration, administrative support services programs, peace and order, public safety programs, Museo Dabawenyo, and several others.
The committee reports highlight that the appropriations under the CMO remain consistent with the 2023 budget.
Within the CMO, the Lingap program was allocated a budget of P400,000,000, which aligns with the 2023 budget. It is noted that around 180,858 individuals were assisted by this program.
The City Tourism Operations Office (CTOO) proposed a budget of P153,882,076 for 2024, anticipating upcoming city events.
The Public Attorney Office (PAO) was allocated P250 million to provide legal assistance to Dabawenyos, while the 2,419 beneficiaries under the Educational Benefit System Unit (Ebsu) will receive P71,791,932, as stated by Emilio Domingo Jr., technical assistant of Ebsu.
The Davao Public Transport Modernization Project (DPTMP) has a budget of P58,053,102, earmarked for upgrading public transport amenities, including road signs, markings, and modular bus stop installations.
An allocation of about P826,227,335 has been assigned to the City Disaster Risk Reduction and Management Office (CDRRMO). The majority of this sum will be directed to the Disaster Risk Reduction and Management Fund (DRRMF) by the Local Government Unit (LGU) Code of 1991, which mandates that the Local Disaster Risk Reduction and Management Fund (LDRRMF) must receive at least five percent of the estimated revenue from regular sources to support activities related to disasters.
Another recipient of this allocation is the Central 911 of the LGU of Davao, receiving P145,209,899 to enhance the office's capabilities in handling emergencies.
Alfredo Baloran, head of CDRRMO, plans to upgrade the office's communication system, including radio communications.
Additionally, construction of additional evacuation centers is underway in Mandug and Catigan, with plans for additional centers in the first district to further enhance CDRRMO's responsiveness to calamities, disasters, and emergencies.
A budget of P2,342,302,374 is allocated for the City Engineer's Office (CEO), with the majority earmarked for infrastructure projects, particularly the flood control system aimed at alleviating city-wide flooding.
Similarly, the Office of the City Environment and Natural Resources (Cenro) will be utilizing P359,618,224 from its overall appropriation of P671,712,519 for its garbage collection program, addressing issues related to floods caused by improper waste disposal.
Engr. Marivic Reyes, officer-in-charge of Cenro, recognizes flooding as a significant concern and emphasizes the intensified campaign for responsible solid waste management in the city.
Other allocations include P259,883,580 for the Office of the City Transport and Traffic Management, P86,682,223 for the Public Safety and Security Command Office, and P845,135,885 for the Office of the City Social Welfare and Development, supporting their 21 programs and two development projects.
Various city offices have received allocations in the Davao City budget for 2024, including the Office of the Sanguniang Panlungsod with P677 million, the Office of the City Administrator with P283 million, and the Office of the City Planning and Development with P95 million.
Also getting funding are the Human Resource and Management (P137 million), Office of the Civil Registrar (P39 million), Office of the City General Services Officer (P80 million), Office of the City Budget Officer (P24 million), Office of the City Accountant (P56 million), Office of the City Treasurer (P233 million), Office of the City Assessor (P55 million), City Archives and Records Office (P44 million), Office of the City Legal Officer (P36 million), City Health Office (P812 million), City Agriculturist (P127 million), Office of the City Cooperative Development (P41 million), and the Office of the city Veterinarian (P103 million).
The city's general fund proper, which covers expenses for personal services, maintenance, and other operating expenses, along with capital outlays for departments, offices, and units of the City Government of Davao (excluding economic enterprises), amounts to P10,121,413,271 or 79.82 percent of the total proposed budget for 2024.
The yearly development fund, accounting for P2.4 billion, has been allocated 19.04 percent of the budget. Of this amount, P1.6 billion (67 percent) will be utilized to finance and maintain projects, including buildings, road networks, electricity supply systems, and other related infrastructure projects.
The budget details reveal a transfer of P925,324,655 from the General Fund Proper of the 2023 budget to the Annual Development Fund for 2024. After all appropriations, there remains an unappropriated balance of P55,532,355.
In compliance with the Department of Budget and Management's (DBM) June 9, 2023, issuance of Local Budget and Management Memorandum Circular 87, lump sum or unitemized allocations, along with statutory and contractual obligations, were incorporated into the budgets of city department offices.
Ortiz emphasized a recent DBM letter, which outlines the National Taxes Allotment entitlements for local government entities: P201.22 billion for cities, P200.42 billion for provinces, P174.28 billion for barangays, and P295.47 billion for municipalities. RGP