The local finance committee (LFC) revealed that there is a decline in the proposed annual budget for Calendar Year 2021. The reduction in the city’s annual budget is the result of the COVID-19 economic downturn, the LFC underscored.
During the city council’s regular session on October 26, the LFC disclosed that the proposed budget for CY 2021 is P1,904,482,458.00 or a decrease of about of 15.54%.
City Treasurer Alex Cabarrubias estimated that a minimum amount of 150 million in the city’s expected revenues will remain uncollected due to the economic impact of the COVID-19 pandemic.
City Budget Officer Leticia Clemente said the city’s annual budget should show an upward trend each year, however, the drop in the city’s proposed budget for CY 2021 is justified by the economic effects of COVID-19.
“There is no over-emphasizing on the reduction of our income and budget for next year. This health crisis is enough justification to present to you a reduced amount from a perceived increase. It should be a progressive income and budget for the city but because of this pandemic, we necessarily expect a reduction,” Clemente explained.
Clemente advised the local government offices to work around their slashed budgets without compromising the rendering of basic public services.
City Accountant Antonio Tabin, meanwhile, expressed little hope for a budget surplus at the end of the year. The excess amount derived from the city’s revenue collection shall be placed as a beginning balance for next year’s budget.
“The source of a budget surplus is overcollection. There is no way we can exceed our estimated income for this year because of the pandemic,” Tabin explained to the council.
“If there happens to be a beginning balance for next year’s budget, it will be derived from the city’s savings at the end of the year and not from overcollection,” Tabin added.
In his letter contained in the Local Expenditure Program for CY 2021, Mayor Benjamin Magalong stated the decrease in the proposed budget for CY 2021 is “inevitable”.
“We are hopeful that this is merely a temporary setback, and we will get back to normal in no time,” Magalong expressed.
In the next sessions to come, the city council will deliberate on the allocated budgets of the different departments and non-offices, subject for approval.** Jordan G. Habbiling
