Rama mulls hiking taxes to raise P11.8-B budget

Aside from intensifying tax collection and selling lots of the South Road Properties (SRP), Cebu City Mayor Michael Rama is considering to adjust taxes to raise the P11.8-billion budget he targets for next year.

“I hope that there will not be (a need to increase taxes), but if there will be, there is a responsibility of the LGU to also do extra delivery of basic services,” Rama said.

Former mayor and Rep. Tomas Osmeña of Cebu City’s south district said the mayor’s 2012 budget is a “joke” like one that would typically come from a “trapo” (traditional politician).

He said the city failed to hit P4.6 billion in revenue this year.

The former mayor also accused the Rama administration of lack of transparency.

The executive department has identified its economic enterprises as source of at least P4 billion in revenues while a credit line of P2 billion would have to be opened with a city hall depository bank to help fund next year’s budget.

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At least P1 billion in lot sales is also being eyed for the budget and about P4.7 billion to be raised from taxes and other sources.

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When asked what are the city’s economic enterprises, Rama said  he would defend the budget when the council calls for a budget hearing.

“These are things which are also discussed in the executive body,” he said.

He said even discussions on the proposed sales of government properties “will be ventilated at the proper time.”

Rama said  before he submitted his draft 2012 budget, he was confident that the revenue projects made by the City Treasurers Office “can happen”.

“He (Rama) just wanted to sell anything and everything (that he could sell),” said Osmeña.

Plans to open a credit line was also a means to “cheat” on the Cebuanos and make them believe that the city has funds to spend.

“It’s cheating, you borrow money and you let the future mayor pay,” said Osmeña.

The congressman said  he now wonders what happened to the proceeds from the sales of SRP lots, which he made to SM Prime Holdings and Filinvest.

He said his administration only received 30 percent of the actual cost while the rest of the money is now being received by the Rama administration.

The city does not also have economic enterprises to speak of, said Osmeña.

He said “he (Rama) just wanted to sell the SRP.”

Osmena said any wise manager would limit his expenditures on what he is capable of earning.

This was the reason why he adopted “a skin and bones budget” when he was still mayor.

“It’s an innovative budget process which I invented.  It is designed so you can’t spend more than what you can earn.  That (budget) is also easier for the council to scrutinize,” he said.

However, Osmeña said under the Rama administration, “everything is bloated,” an indication of lack of financial control.

Rama said he is proposing the P11.8-billion budget with hopes to fund all the city’s needs next year.

But if the need arises, he would still propose for a supplemental budget to be passed.

“SB is always a thing that can happen along the way if there are circumstances that may occur,” said Rama.

He said there are also government assets like the SRP, which they could dispose to earn revenues. With Correspondent Edison delos Angeles

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