Capitol mulls P200M to pay liabilities
THE Cebu provincial government is considering to borrow P200 million to pay part of its P600 million payables, the budget office said yesterday.
“There is a big possibility that we will avail of the credit line facility. If our finances get tight by the end of the year, we will borrow,” Provincial Budget Officer Danilo Rodas said.
He said under the proposed budget for next year, P11 million is allocated for loan interest alone.
Rodas said the province has a P500 million budget deficit due to P600 million worth of liabilities incurred from infrastructure projects. These projects were not approved by the Provincial Board (PB).
“The deficit is our cash available versus the payables. We cannot pay everything because we lack the money,” Rodas said.
“The cash can also be used for other needs such as our operational expenses. We are still holding discussions on what to prioritize,” he added.
In his budget message for next year’s proposed annual budget before the PB, Gov. Hilario Davide III said the cash deficit was caused by the payables incurred by his predecessor, former Cebu governor Gwendolyn Garcia.
The amount of payables also prompted Davide to propose a “leaner annual budget” worth P2.59 billion or P1 billion lower than this year’s P3.6 billion budget.
Aside from borrowing, Davide said he will also consider defunding vacant positions in the provincial government which is budgeted in the general fund.
Vice Gov. Agnes Magpale yesterday said borrowing money is “understandable” since the present administration didn’t enjoy a budget surplus similar to the first days of the Garcia administration.
She said the former governor inherited P2 billion from the administration of former governor Lito Osmeña.
“For now, I don’t have an idea yet if Capitol will push through with the borrowing,” Magpale said.
In her turnover speech last June, Garcia said Cebu province was “debt free” since she started her first term in 2004.
She said the province financial status also improved with P28.1 billion in assets, P615 million in income and bank accounts of over USD $517,000 and P791.4 million. Correspondent Peter L. Romanillos
