Cost-cutting sought to address budget deficit

CEBU, Philippines — To tackle the anticipated budget shortfall of the Cebu City government, various departments have proposed several strategies to cut costs, primarily on reducing travel expenditures.

Councilor Francis Esparis initiated this executive session following the directive from Mayor Nestor Archival to reduce city expenses and redirect most funds towards social services.

However, Councilor Winston Pepito, currently the acting vice mayor, emphasized the importance of finding a balance in this approach to avoid compromising the quality of public service. He contended that the government should not focus solely on saving money but should instead practice wise spending.

Councilor Sisinio Andales expressed his support for implementing cost-cutting measures. He stated, “Why? Because the previous administration failed to remit millions of pesos in withholding taxes to the BIR for both elected officials and their employees.”

Andales further noted that the previous administration failed to remit millions of pesos to the Government Service Insurance System (GSIS) and to settle outstanding loans, which have contributed to the current administration's budget deficit.

Additionally, he emphasized that the government's electricity bills are excessively high and should be reviewed for potential reductions.

Joey Baclayon, representing the City Agriculture Department (CAD), presented several cost-cutting measures they have implemented, including a reduction in travel expenses.

To minimize these costs, the department decided to merge all meetings into a single session, rather than conducting multiple meetings. Baclayon also mentioned that they have digitized their monitoring processes, eliminating the need for physical visits by allowing for the electronic submission of reports.

Baclayon announced that training sessions will now be conducted online via digital platforms instead of in person. They have also adopted video conferencing and explored other resource-saving methods to further reduce travel expenses. Additionally, personnel travel at the city's expense has been limited.

Regarding workforce reduction, Baclayon mentioned that the CAD department, which previously had at least 68 personnel, has been reduced to 35 as part of the cost-cutting measures implemented.

Portia Basmayor, the head of the Department of Social Welfare and Services (DSWS), addressed the Council and explained that while some of their travel expenses are related to training, these activities are essential for enhancing the capabilities of social workers.

She clarified that the majority of their training initiatives are funded by the Department of Social Welfare and Development (DSWD).

Councilor Michelle Cellona emphasized the importance of conducting “echo trainings” for those who attended national-level events so they can share their insights with colleagues who were unable to participate.

The Council then required the department to submit reports on these echo sessions to ensure that training costs are being utilized effectively.

Nova Batiller, the acting head of the Cebu City Assessor’s Office, stated that their measures aim to reduce travel-related expenses. Among their proposals is the establishment of seminar attendance guidelines, which would include setting assessment criteria, carefully selecting attendees, and imposing departmental limits.

They also suggested conducting in-house training sessions to further minimize costs.

Considerations emphasized

Pepito emphasized that while the current administration has focused on cost-cutting, it should not come at the expense of the quality of government services.

“I want to stress that the government is not solely focused on saving money; instead, it should spend wisely and catalyze growth. The key is to avoid wasteful spending,” said the acting vice mayor.

Pepito acknowledged the mayor’s directive but emphasized the need for some face-to-face training, as many departments have transitioned to online learning due to cost-cutting measures. He emphasized though, that physical trainings should not be eliminated to ensure that the quality of public service remains intact.

To address budgetary constraints, Archival instructed departments to reduce extravagant government-related activities and minimize employee travel.

While increasing revenue is a vital strategy for addressing the deficit, Archival emphasized the importance of savings. To achieve this, he directed department heads to limit government-funded employee travel and to avoid activities that involve significant expenditures.

The mayor deemed this necessary after assessing that previous expenses showed large allocations for such activities.

In his first week in office, Archival revealed that the forecasted budget deficit of Cebu City Hall had reached a staggering P6 billion.

Archival explained that this projection covers the entire year, based on consultations with the City Accounting Office and the City Treasurer’s Office. He said the city still has existing funds, integrated with city revenues, amounting to around P9 billion.

In a financial report signed by Emma Villarete, a member of the transition team, an additional P3.5 billion in forecasted revenue is expected by the end of the year. — (FREEMAN)