The 21st Davao City Council has given its final approval to the city's ₱15.8-billion budget for 2026, marking a significant financial increase aimed at enhancing public services and infrastructure development throughout the city.
Budget Approval and Key Figures
During a special session held on November 13, 2025, the city council led by Acting Vice Mayor Rodrigo "Rigo" Duterte II approved the annual budget on third and final reading. The ₱15.8-billion allocation represents a 10-percent increase over the previous year's ₱14.3-billion budget, translating to an additional ₱1.5 billion in funding.
The budget proposal originated from the Office of Davao City Mayor Sebastian "Baste" Duterte and was formally filed by Davao City Councilor Danilo Dayanghirang, who chairs the Committee on Finance, Ways and Means, and Appropriations.
Major Budget Allocations
The budget distribution reveals significant investments across various sectors. The General Fund Proper receives the largest share at ₱13.6 billion, covering personnel services, maintenance, operating expenses, and capital outlays for city departments.
Following this, the Development Fund gets ₱2.028 billion, while Economic Enterprises receive ₱16.8 million. Within economic enterprises, public market management leads with ₱103 million, followed by slaughterhouse operations at ₱45 million, Sta. Ana Port with ₱1.8 million, and city-managed cemeteries with ₱9.7 million.
Department-Specific Funding
Among city departments, the City Mayor's Office (CMO) secures the highest allocation at ₱5 billion, representing 36.69 percent of the total budget. Other major recipients include the City Social Welfare and Development Office (CSWDO) with ₱1.4 billion and the City Environment and Natural Resources Office (CENRO) with ₱1.1 billion.
Additional significant allocations feature the City Disaster Risk Reduction and Management Office (CDRRMO) at ₱1 billion, the City Health Office (CHO) with ₱886 million, and the Sangguniang Panlungsod receiving ₱731 million. Infrastructure and transportation sectors also see substantial funding with the City Engineer's Office (CEO) getting ₱618 million and the City Transport and Traffic Management Office (CTTMO) allocated ₱303 million.
Revenue Sources and Strategic Priorities
The budget increase stems from two primary revenue streams: a 14.86 percent rise in National Tax Allotment (NTA) amounting to ₱1.3 billion, and projected increases in locally sourced revenues of approximately 4.6 percent or ₱230 million. City officials note that the NTA growth reflects ongoing community recovery from the COVID-19 pandemic.
For the 2026 fiscal year, the city government has adopted the theme "Prioritizing Solutions, Responding to Basic Needs, and Innovating Ways for Service Excellence." Key focus areas include poverty alleviation, infrastructure development, solid waste management, healthcare, education, agriculture support, business development, transportation planning, peace and order, disaster risk reduction, and tourism development.
The budget report emphasizes plans to enhance barangay capabilities, develop citizen skills, stimulate local economy through business support, improve healthcare facilities in remote areas, strengthen peace and order measures, implement transparent IT-enabled public services, and pursue major infrastructure projects for equitable distribution of facilities across Davao City.
