Cebu Province Allocates P8.9 Billion Revenue for Strategic Development and Fiscal Oversight
The Cebu Provincial Government has announced plans to utilize its P8.9 billion revenue collected in 2025 to realign priority programs and accelerate social and infrastructure development. This initiative will be implemented under stricter fiscal discipline and realistic budget planning, as confirmed by officials on Friday, February 27, 2026.
Revenue-Driven Budget Refinement
Assistant Provincial Administrator Aldwin Empaces detailed that the total revenue of P8,907,461,830.79, gathered from January 1 to December 31, 2025, will guide the refinement of priority programs, projects, and activities. The goal is to align investments closely with actual income, ensuring efficient resource allocation.
Cebu Province currently faces an estimated P3 billion gap between its 2025 revenue and the P11.9 billion approved budget for 2026. However, Empaces emphasized that this difference does not automatically indicate a deficit. He explained that additional funding sources, such as unspent funds from 2025, National Government support, and potential higher collections, could bridge this gap.
"Including the continuing unspent funds of 2025, or savings, plus National Government funding for this year. It may even exceed projections, which would mean more savings for 2026 that can be added to the 2027 budget," Empaces stated. "So far, based on projections, as we speak, the P11.9 billion funds for 2026 are balanced."
Enhanced Budget Monitoring and Legal Framework
Governor Pamela Baricuatro has established a monthly budget monitoring system to track the performance of each office and department. This system aims to check the efficiency of spending approved funds, promoting accountability and transparency in financial management.
The 2026 budget, approved by the Provincial Board on January 8, 2026, and signed by Baricuatro, is 52.40 percent lower than the 2025 allocation. Under Republic Act 7160, or the Local Government Code of 1991, adjustments to this budget require a new ordinance from the Provincial Board. If revenues exceed projections, supplemental appropriations can be authorized, and the governor may augment deficient items using actual savings within the same expense class.
Detailed Revenue Sources
Data from the Provincial Treasurer's Office reveals that the majority of the P8.9 billion revenue came from external sources. The National Tax Allotment contributed P6,284,205,149, with additional shares including P1.29 million from the Philippine Charity Sweepstakes Office and P1.85 million from other national wealth collections.
Local sources accounted for P2.62 billion, broken down as follows:
- Tax revenues under the general fund-proper reached P512.43 million, including real property tax (P268.63 million), business tax (P147.60 million), and other local taxes (P96.19 million).
- Non-tax revenues totaled P243.47 million.
- Economic enterprises generated P250.89 million, while other receipts amounted to P335.36 million.
Notably, provincial hospitals earned P753.47 million in service and user charges, provincial bus terminals generated P103.40 million, and the Cebu Provincial Inter-LGU Waterworks System earned P18.16 million. The Special Education Fund reached P402.87 million, largely derived from real property taxes.
Historical Context and Future Outlook
Empaces contrasted the current budget approach with the previous administration, describing former governor Gwendolyn Garcia's P25 billion annual budget for 2025 as "bloated and unrealistic." The 2026 budget reflects a more conservative and data-driven strategy, with spending limited to actual cash collections and obligations not exceeding revenues.
This comprehensive plan underscores Cebu Province's commitment to sustainable development through prudent financial management and targeted investments in key sectors.
