The Cebu City government may have to accept a “skin-and-bones” budget next year after executives failed to convince the City Council there would be enough funds to support Mayor Michael Rama’s proposed budget of P11.8 billion.
“Most of our income sources have been going down during the last four years. How will you justify an increase in the city’s expenses?” Vice Mayor Joy Augustus Young asked.
City Treasurer Tessie Camarillo told the council yesterday that the city would only be able to raise P601 million of the P4-billion revenues projected from economic enterprises, which the Local Finance Committee identified as the biggest source of revenue.
Camarillo also admitted that the P2-billion credit line proposed as a fund source could not be considered a legitimate source of revenue unless it is used before the budget’s approval.
Two other LFC members—budget officer Nelfa Briones and planning officer Alipio Bacalso— agreed.
“I am with the observation that we may have to adopt a skin-and-bones budget next year. Our next budget may just be a little over this year’s P4.5-billion budget. There is no way to fit all the expenses to fit the budget (proposed by the mayor) with a declining income,” he said.
Young said that unless more funds are available, the council would have to pass a smaller budget enough to address the city’s basic needs for salaries,, electricity and water among others.
The council convened for their fifth budget hearing yesterday. Before the discussion started, Camarillo presented a revised income receipt.
But Young said he did not want the council to discuss the new figures because it was unsigned by the LFC members.