CEBU CITY, PHILIPPINES — The Cebu City government has approved its 2026 Budget of ₱13.4 billion, the lowest in four years and a clear signal of the Archival administration’s pivot to fiscal restraint.
The appropriation, passed after more than half a month of deliberation by the Committee on Budget and Finance, funds all city departments and offices from January 1 to December 31, 2026.
Mayor Nestor Archival submitted the proposal in line with the Annual Investment Program, framing it as a move toward streamlined spending, manpower rationalization, and long term sustainability.
General Public Services will absorb nearly half of the budget at ₱6.53 billion, followed by Social Services at ₱3.96 billion, Economic Services at ₱762 million, and a calamity reserve of ₱675 million.
The Local Development Fund is set at ₱769 million, Aid to Barangays at ₱751 million, and Miscellaneous Purposes at ₱20 million.
By expense class, Maintenance and Other Operating Expenses dominate at ₱8.53 billion, while Personal Services account for ₱3.4 billion and Capital Outlay ₱1.54 billion.
The City Treasurer’s Office projects ₱13.5 billion in revenues, with ₱5.4 billion from tax collections, ₱3.23 billion from non tax income, ₱3.84 billion from the National Tax Allotment, and additional shares from ecozone operations, hospitals, and markets.
City Councilor David Tumulak, chair of the budget committee, said deliberations exposed excessive manpower requests and weak justification for some capital outlay items.
The Council responded with amendments requiring stricter documentation and oversight. Job order hiring must now be project based and approved by both the mayor and the Council.
Security services are limited to licensed guards accredited by the PNP SOSIA; ICT procurement must be cleared by the Management Information and Computer Services; and only the Council may authorize the purchase of vehicles and heavy equipment.
The Long-Life Program will be dispensed solely by licensed pharmacists, with its allocation increased by ₱5 million.
Aid to Barangays and youth related funds will be released only upon barangay certification and quarterly reporting.
Several offices saw cuts due to underutilization of their 2025 budgets, including Barangay Affairs, Environment and Natural Resources, Sports, Cultural and Historical Affairs, and City Markets.
In contrast, capital outlays for the Cebu City Police Office and the Sangguniang Panlungsod were increased to bolster public safety and legislative operations.
The city’s budget history reflects fluctuating priorities and fiscal adjustments over the past years. In 2019, Cebu City operated on ₱8.1 billion, which rose to ₱10.4 billion in 2020 during the pandemic. The following year, the budget was ₱10 billion (2021), before dipping to ₱8.9 billion in 2022.
In 2023, the Council approved a historic ₱51.4 billion budget, the largest ever for a local government unit in the Philippines, driven by massive allocations for medium-rise buildings and land acquisition, supposedly.
By 2024, the budget was trimmed to ₱25.8 billion, and in 2025 further reduced to ₱14.6 billion.
The newly approved ₱13.4 billion for 2026 continues this trend of fiscal tightening, making it the lowest in recent years.
| Written by Caecent No-ot Magsumbol & Preciosa Bacalso
