The province of Cebu is bracing for a significant fiscal tightening, with its estimated receipts for 2026 projected to be a staggering P10.12 billion lower than the 2025 projections. This massive decline, revealed in recent budget committee reports, is attributed to what the current administration calls inflated revenue estimates made under the previous leadership of former governor Gwendolyn Garcia.
A Shift to Realistic Revenue Projections
In response to the overblown forecasts, Governor Pamela Baricuatro has put forward a proposed budget of P11.9 billion for 2026, which she describes as a grounded and realistic financial plan. The most dramatic correction is seen in the Basic Real Property Tax, which plummets from a projected P4.19 billion in 2025 to just P650 million in 2026, a reduction of P3.54 billion.
Other major revenue streams have also been sharply revised downward. Collections from the tax on sand, gravel, and other quarry products were slashed by P722.9 million, while supervision and regulation enforcement fees were cut by P229 million.
Removed Items and the 'Paper Budget' Problem
The budget and appropriation committee's report detailed that several large revenue items from the 2025 budget were completely removed from the 2026 projections due to a lack of assured funding. These include:
- P5.4 billion in extraordinary receipts from grants, donations, and aid.
- P6.5 million in shares from government-owned corporations like the Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO).
The committee explicitly linked these cuts to a pattern of overestimation in the previous budget. This practice led to the over-allocation of funds to various programs, projects, and activities (PPAs), creating a misleading scenario where budgets existed "on paper" but had no real financial backing for implementation.
"This bloating of the budget results in a scenario where there is still a budget 'on paper' for specific PPA but no actual sufficient funds to support or implement the same," the committee report stated, warning that budget augmentation under such conditions would be ineffective.
Officials Acknowledge Overestimation, New Policy of Fiscal Discipline
Provincial Budget Officer Danilo Rodas and Provincial Treasurer Atty. Roy Salubre reportedly acknowledged during budget hearings that the sharp 2026 reduction stemmed from a deliberate move to adopt more realistic income estimates. This admission is noted in the committee report, confirming the widespread overestimation within the 2025 provincial budget.
Moving forward, the committee stated it has identified several proposed allocations in the 2026 budget that require reduction or tempering due to excessiveness or lack of justification. This aligns with the Baricuatro administration's stated policy of fiscal discipline and the prioritization of essential services. Attempts to reach Treasurer Salubre for further comment on Tuesday, December 16, were met with a response that he was in a meeting.
