The Cebu City Council has given its final approval to the city's proposed annual budget for the year 2026, which amounts to P13.4 billion. The spending plan, submitted by Mayor Nestor Archival, emphasizes streamlined operations, rationalization of manpower, and long-term fiscal health for the city.
Budget Breakdown and Key Allocations
The budget will fund the operations of all city departments and offices from January 1 to December 31, 2026. It aligns with the city's development goals as detailed in its Annual Investment Program (AIP). The largest share, P6.53 billion or 48%, is earmarked for General Public Services. Social Services follows with P3.96 billion (29%), while Economic Services gets P762 million (6%). A P675 million (5%) reserve is set aside for calamities.
Other significant allocations include the Local Development Fund (P769 million or 6%), Aid to Barangays (P751 million or 4%), and Miscellaneous Purposes (P20 million or 0.15%).
When categorized by expense type, Maintenance and Other Operating Expenses (MOOE) claims the lion's share at P8.53 billion or 63%. Personal Services receives P3.4 billion (25%), and Capital Outlay is allocated P1.54 billion (11%).
Revenue Sources and Council Amendments
To finance this budget, Cebu City anticipates total revenues of P13.5 billion. This projection includes P5.4 billion (38%) from Tax Revenue, P3.23 billion (23%) from Non-Tax Revenue, and a P3.84 billion (27%) National Tax Allotment. Additional income will come from shares from the Ecozone, Hospital Income, and Market Income.
The Council's Committee on Budget and Finance, chaired by David Tumulak with members Edgardo Labella II, Winston Pepito, and Alvin Arcilla, conducted thorough hearings in October and November 2025. Their review led to significant amendments to ensure efficiency and accountability.
Key changes include:
- Stricter rules on hiring job order personnel, requiring detailed documentation and Sangguniang Panlungsod approval.
- Limiting security service hires to licensed private guards with valid PNP-SOSIA licenses.
- Mandating prior approval for drug and medicine procurement, with dispensing handled only by licensed pharmacists.
- Increasing the City Health Department's allocation by P5 million for the Long Life Program.
- Requiring barangay certification and mayoral approval for the release of Aid to Barangays and youth program funds.
Several departments saw their MOOE and Capital Outlay budgets reduced due to underutilization of their 2025 allocations. Conversely, capital outlays for items like vehicles for the Cebu City Police Office and logistical support for the City Council were increased. The final amended General Fund for 2026 is P13.414 billion, with an unappropriated balance of P85.44 million.
Mandaue City Also Approves 2026 Budget
In a related development, the neighboring Mandaue City Council has approved its own budget for 2026, amounting to P4.5 billion. City Administrator Attorney Gonzalo "Sally" Malig-on confirmed the approval on December 1.
The budget supports the priorities of Mayor Thadeo Jovito "Jonkie" Ouano, including the digitalization of frontline services starting with the Assessor's Office, a citywide ID system, improvements for Pajara Park, and flood management projects. Malig-on expressed satisfaction with the early and smooth approval, attributing it to transparency during the process. Mandaue City is targeting a P4.5-billion collection for 2026.
