Pasay City unveils more spending cuts next year

With austerity measures already in effect, the Pasay City government has revealed further spending cuts next year with a protected lower budget as it struggles to make ends meet due to lower revenue income and a growing debt.

Pasay City administrator lawyer Ernestina Carbajal blamed the financial difficulty to the current economic crisis and the failure of several government-owned and controlled corporations (GOCC) to pay their tax obligation to the City.

"That is really one of our biggest headaches, we have so many government properties in our City but we cannot collect anything from them," said Carbajal in an earlier interviw.

The lack of funds has already taken its toll in the case of City hall employees who would have to celebrate Christmas without their yearly bonus and gift bags on top their 13th month pay.

All these because Pasay City decided not to borrow anymore from the Philippine National Bank (PNB). The City usually borrows some P30 million from the PNB at the end of each year since the time of former mayor Pablo Cuneta only to be able to provide for the employees’ 13th month pay and gifts.

"This is the first time the City did not borrow anything, I have been a councilor and I know that it has been a yearly practice to borrow money," said the City administrator.

The City reportedly has an outstanding debt of P150 million with PNB. This, aside from the P80 million it has to refund to the Social Security System based on a recent unfavorable decision by the Supreme Court.

The City, on the other hand, claims some P750 million from the Ninoy Aquino International Airport, P395 million from the Light Rail Transit Authority, and P61 million from the Public Estates Authority.

"We have no choice but lower our budget next year, since the money we are receiving from the national government has been reduced," said Carbajal. The City budget for 2002 is projected at P1,183 billion, P113 million less than this year’s P1.296 billion.

Last month, Carbajal issued a memorandum to all City department heads to conserve on their office supplies and save on electricity. She did not specify what other kind of spending cuts they would have next year.