Purchase of equipment: Capitol won’t use P290M surplus

CEBU, Philippines- The Cebu Provincial Government will not use the P290-million budget surplus from last year to purchase heavy equipment as doing so would reportedly put the province’s financial status in jeopardy.

The Capitol instead resorted to borrowing P200 million from Landbank of the Philippines to buy the equipment worth P200 million.

“Kung i-one time nato ang pagbayad, P91 million na lang ang mahibilin ang atong magamit (if we spend P200 million at a time, we will be left with only P91 million) for other purchases. It’s not good for the province kay wa na tay more elbow room,” said acting provincial treasurer Manny Guial.

He explained that the province’s surplus in 2014 has also been earmarked for other priority projects of the administration.

He made this clarification after receiving queries as to why the province had to borrow money when it has savings in the previous year.

The Capitol last month inked a loan agreement with Landbank, which signaled the provincial government to start the bidding process for the 11 types of heavy equipment worth P200 million.

The loan is payable in five years, but Cebu Governor Hilario Davide III earlier vowed to settle the obligation within a year “depending on the result of the 2016 elections.”

Davide is putting the purchase of heavy equipment among the top priorities of his administration because of the problems the province had experienced during the clearing operations and repair of damaged roads caused by super typhoon Yolanda in November 2013.

The Provincial Information Office disclosed that the province received several requests of bulldozers, loaders, graders and other heavy equipment from the different local government units.

The Capitol currently has one bulldozer and a grader.

The province obtained the surplus after its realized income last year exceeded its expenditures, an indication of good financial management through prudent spending, the Provincial Accountant Office reported.

Guial further reported that the province is now halfway in achieving its target income collection this year at P2.859 billion.

As of June this year, the Capitol had P1.4 billion cash in its coffers.

Guial said they are optimistic to surpass the target before the fiscal year ends due to increase of the province’s internal revenue allotment and ‘efficient’ collection of real property taxes.

“Based sa assessment sa current nato nga state, ma-achieve nato target unless naay intervening factor, like natural calamities,” Guial said.  (FREEMAN)