ILOILO City – The Sangguniang Panlungsod (SP) approved the 2023 annual budget of the city amounting to P2.95 billion, lower than this year’s P3.083 billion.
The chairman of the SP appropriations committee, Councilor Rex Sarabia, attributed the drop to the projected P231-million reduction in the city’s 2023 National Tax Allotment (NTA, formerly known as Internal Revenue Allotment or IRA) share due to the coronavirus pandemic.
“I am quite happy nga we made the most out of what we have,” said Sarabia. “Mayo man ang leadership ni Mayor Jerry (Treñas), na-foresee ‘ya man ang mga sitwasyon so ginpasakaan ya ang collection sang mga business taxes naton. So, makita naton subong damu kita nga mga offsite centers sa city. At least ma-curb ang reduction,” he added.
During the deliberation, the then proposed budget was peppered by several questions and clarifications from lone opposition, Councilor Plaridel Nava. He did not object the passage of the 2023 budget but he sought clarification on some items like the confidential budget under the city mayor’s office.
“Naintindihan ta man na kay ang aton mga councilors mga representatives na sang pumoluyo, natural lang nga i-deliberate sang husto ang aton budget kay kwarta ini sang pumoluyo. Wala kita liberty pagusto lang gasto. I understand the sentiments of Councilor Nava kay veteran man siya nga legislator kag former chairman sang committee on appropriation. Wala man siya damu objections, he just wanted to clarify certain items. So, okay man, we tried our best man to make the most of the budget,” Sarabia added.
In his letter to the SP when he submitted the 2023 Executive Budget for the general fund and its special account, the local economic enterprise for legislative authorization, Mayor Jerry Treñas said that for 2023, the estimated receipts certified by the local finance committee is P2,958,193,694.00.
He noted that the city’s local sources comprise about 52.83 percent of the estimated receipts while 46.49 percent can be attributed to its NTA share.
Meanwhile, the share from the economic zones constitutes .68 percent of the city’s projected income.
Treñas reiterated that business closures in 2020 took a tool on the national government’s tax collections and consequently affected the city’s estimated receipts, particularly its share of the NTA.
Nevertheless, he noted that the city’s collections from local sources remain its greatest backbone to meet its vision and attain a balanced budget that is compliant with the mandate of the Department of Budget and Management (DBM) local budget memorandum order.
“We are steadfast as well in pursuing the goals of this administration’s WHEELS (Welfare, Health and Sanitation, Education, Environmental Management, Livelihood and Sustainability) program while embracing the challenges of absorbing the costs of devolution pursuant to Executive Order No. 138 dated June 1, 2021 despite our limited resources,” Treñas stressed.
The city government, the mayor noted, also laid down some financial policies for next year’s budget to ensure that concerns of various sectors and mandated plans and programs are addressed.
Among these include appropriation for the fourth tranche of the salary schedule for local government units to take effect in July 2023; observance of status quo on appropriations for maintenance and other operating expenses accounts; allocation of funds for programs/projects/activities (PPAs) as mandated; appropriations for allowances of national government officials were granted to cover 12 months but at reduced rates as the grant of the same is subject to availability of funds; and full appropriation was provided for financial expense and debt service (computed at 6.14% of the total estimates of receipts from regular sources).
The greater chunk of the budget goes to general public services at 48.63 percent (P1.4 billion) where majority of the programs of the city are incorporated. These are PPAs that provide planning, financial, administrative, legal, and legislative services.
Social services sector gets 22.54 percent (P666.8 million) of the budget and includes PPAs for education, health, public safety, and protection of the marginalized and disadvantaged members of the society.
The economic services sector follows at 14.80 percent (P437.7 million) with PPAs directed towards promoting growth in economy like productivity in agriculture, generation of employment and livelihood projects.
The remaining 14.03 percent (P415.1 million) can be attributed to other services.
Meanwhile, for the LEEO, the estimated receipts for 2023 is P76.8 million, with an increase of 1.42 percent compared to this year’s estimated receipt of P75.9 million
Treñas said while the total estimate of income for Local Economic Enterprise Office increased by 1.42 percent, the same was a conservative estimate considering that the city is in the process of modernizing its markets simultaneously and the temporary stalls set up might have an effect on the collection of fees.
“It is on this context that we are open to possibilities of entering into PPP (public-private partnership) agreements for the improvement of our markets and slaughterhouse,” he added./PN
