Cebu City Council Implements Fiscal Discipline, Trims 2026 Budget
The Cebu City Council has taken a decisive step towards fiscal responsibility, reducing the proposed 2026 annual budget to P13.3 billion. This move comes after the council's committee on budget and finance identified several irregularities in the initial proposals submitted by various City Hall departments.
Mayor Nestor Archival had originally presented a P13.46-billion budget for the upcoming fiscal year. However, a report submitted on Tuesday, November 25, 2025, detailed significant reductions. The General Fund Proper was decreased by P21.83 million from P11.466 billion, while Special Accounts were lowered by P17.7 million from the initial P1.999 billion.
Key Reasons Behind the Budget Cuts
The committee's adjustments align with Mayor Archival's directive to curb unnecessary expenditures, enforce stricter hiring protocols, and prioritize essential social programs. A major point of contention was the vague justification for hiring numerous job order (JO) workers.
Officials discovered that several offices requested JO workers without providing clear job descriptions, necessary qualifications, or specific assignments. In response, the committee now mandates that any hiring charged under Maintenance and Other Operating Expenses must first receive council approval and be directly linked to a specific program.
Procurement processes also faced intense scrutiny. To prevent duplication and future audit issues, the panel ordered that all purchases of computers, ICT systems, vehicles, and heavy equipment be centralized under the Management Information and Communications Technology Services. Furthermore, security service procurement must now strictly comply with Republic Act 11917 and PNP-SOSIA licensing requirements.
Offices Facing Significant Reductions
The committee targeted offices where budgets were deemed underutilized, redundant, or poorly justified. The following departments saw notable cuts:
- Barangay Affairs Office: Lost approximately P19.5 million due to large, unexplained manpower requests for cultural programs.
- City Planning and Development Office: Reduced by P12.76 million because of unclear items and overstated project costs.
- City Health Department: Faced a combined reduction of P4 million where JO hiring lacked sufficient basis.
- City Agriculturist and CENRO: Saw cuts amounting to P11.7 million due to overlapping projects and vague manpower requests.
- Operation of City Markets: Budget reduced by around P10 million due to issues in security service procurement.
Strategic Increases for Essential Services
Despite the overall belt-tightening, the committee approved funding increases for programs considered critical to public welfare and safety.
The Cebu City Police Office received an additional P10 million for vehicle purchases. The General Services Office was granted P12.76 million more to support logistics and vehicle maintenance across city departments.
In a boost for social services, the Long Life Program, the city's maintenance medicines distribution initiative, received a P5-million augmentation. This funding, sourced from savings, is earmarked for hiring licensed pharmacists and ensuring proper medicine storage and dispensing. The Cebu City Wildlife Rescue Facility also gained a P700,000 increase for its animal care and rescue operations.
The revised P13.3-billion budget proposal will now be forwarded to the full City Council for further deliberation and final approval before the end of the year.
