In Talisay Chunk of SB2 goes to capital gains tax

CEBU, Philippines - A chunk of the proposed P55.9 million Supplemental Budget No. 2 (SB2) for the Talisay City government this year is intended for payment of capital gains tax and allowances and bonuses for government employees. 

City Councilor Rodolfo L. Cabigas, who is the chairman of the committee on appropriations, budget management & ways and means, said the supplemental budget is dependent on the actual availability of funds. 

Under the law, the city may allow to propose for a supplemental budget for as long as there is a need for additional budget and the availability of funds. 

According to Cabigas, the approval of SB2 was urgent because the city has to appropriate funds for its payment on the capital gains tax as recommended by the Commission on Audit.

COA, in a recent 2011 audit observation and findings, noticed that the lots where the city hall sits are still not in the name of the city due to non-availability of funds to pay for taxes and fees. 

Based on the proposed SB2, the city has appropriated  P10,988,576.55 for the Capital Gains Tax and Others and other bonuses and allowances for government employees amounting to P10.7 million. 

In terms of the appropriation for this year’s SB2, most of the funds was placed under the General Fund amounting to P23.598 million.

This includes the electricity and water expenses, advertising expenses, gasoline, and other maintenance and operating expenses. 

A total of P8.2 million has been allotted for the non-expenditures, which include the financial assistance to barangays, different task force under the Office of the Mayor, tourism development, among others. 

Capital Outlay has an appropriation of P10.9 million, which includes some infrastructure projects. 

According to Cabigas, the city has strict compliance to the 55 percent Personal Service Limitation, which they have observed and all procurements was strictly observed under the provision of R.A 9184.

In accordance with Section 336 of Republic Act No. 7160 or the Local Government Code of 1991, Cabigas said the City Mayor and the Presiding Officer of the Sanggunian are hereby authorized to augment any item in the approved annual budget for their respective offices from savings in other items within the same expenses class of their respective appropriations.  (FREEMAN)