CEBU, Philippines - The Talisay City Budget Office has submitted a draft version of the annual budget for next year to the city council committee on budget which is pegged at P470 million, about P6 million more than this year's budget.
The small decrease of next year's budget is attributed to the P40 million decrease of the city's internal revenue allotment for next year, said budget officer Edgardo Mabunay.
Mabunay said he expected a P20 million decline of their IRA following the national government's failure to achieve its projected income; but when the 16 new cities came into the scene, that decrease was, however, doubled.
From this year's more than P300 million, the Department of Budget and Management, as it has projected, is giving only P294 million IRA to Talisay next year, Mabunay said.
Mabunay was however glad to note that the city can expect an increase of the local income of at least 20 percent next year.
"If our local income has not increased, we would have to decrease our annual budget," said the budget officer. The city's annual budget for this year is P464 million, P334M of it was from its actual IRA.
Mabunay had the city treasury to thank for for its "efficiency" in tax collection, which is set to generate at least P150 million next year.
The increase could also be attributed to the amended of the city's Tax Code which increases the business tax.
Mabunay, who already submitted the draft annual budget to the council last month, shared that with the slight increase of budget, only the "Personnel Services" category will be given that portion of the increase, the rest like the "Maintenance and Operating Expenses" will be on a "status quo" mode.
And to make do with what it has, Mabunay said the city will implement an "austerity measure." He is, however, hopeful that the DBM's projection of the city's IRA will increase at the start of the year.
"They (DBM) just make estimates. They will know the actual IRA during the first quarter, so it is possible we can get more from this projected amount," Mabunay said.
He also expects the national government to give aid, especially that all local government units are complaining because of the decrease in revenues. (FREEMAN)