DBM gives city budget full nod

CEBU, Philippines — Cebu City's P13.41-billion annual budget for 2026 has received the Department of Budget and Management's (DBM) highest review classification, with the agency declaring it "operative in its entirety."

The DBM ruling covers the city's 2026 annual budget amounting to P13,414,555,703, as well as three supplemental budgets approved between October 2025 and April 2026. The agency's review confirmed that the appropriations complied with the Local Government Code of 1991 and are legally valid and enforceable.

The first measure reviewed was Supplemental Budget (SB) No. 2 for 2025, which the City Council approved on October 1, 2025 with an appropriation of P81.395 million.

Funded from third-quarter savings, the supplemental budget primarily supported social welfare and urgent operational requirements. Of the total amount, P40.8 million was allocated for financial assistance under the Senior Citizens' Program during the last quarter of the year, while P40 million went to the Department of Engineering and Public Works for road repairs and maintenance. The remaining funds were allotted for livelihood programs and drainage improvement projects.

The City Council later approved SB No. 3 for 2025 on December 12, 2025, appropriating P1.639 billion. Certified as urgent by Mayor Nestor Archival, the measure funded bonuses and incentives for thousands of City Hall employees, including contract-of-service and job order workers.

The supplemental budget also earmarked P509.8 million for the construction of the Cebu City Medical Center (CCMC), P200 million for land acquisition for housing projects, and P663 million for recovery and rehabilitation projects in areas affected by Typhoon Tino.

Additional appropriations supported the Guba and Bonbon hospitals, the Division for the Welfare of the Urban Poor, city market operations, and a P58.37-million scholarship program.

SB No. 1 for 2026, approved on April 28, carried a final appropriation of P800.54 million for the General Fund Proper and P17.72 million for Special Accounts after the City Council reduced the original P964-million proposal.

The largest allocation—P400 million—was intended for garbage collection and disposal following the closure of the Binaliw landfill earlier this year.

Another P35 million was allotted for fuel subsidies for public transport drivers, while continuing financial assistance for senior citizens and persons with disabilities also received funding.

The budget likewise set aside P29 million for the Teachers Upgrading Program to support graduate studies for public school teachers. Other appropriations covered disaster preparedness initiatives and barangay-level projects, while proposed funding for legislative building renovations and greenhouse projects was trimmed during committee deliberations.

The DBM clarified that an "operative in its entirety" classification is a compliance determination rather than a performance rating.

Under the agency's Local Budget Circulars, local budgets may be declared "operative in its entirety" if they fully comply with legal requirements, "partially operative" if certain appropriations are disallowed, or "inoperative" if they fail to meet statutory requirements. The review process, mandated under Section 326 of the Local Government Code, ensures that local appropriations are legally sound before implementation.

The City Budget Office reported processing 975 allotment release orders, 21,575 obligation requests, 907 agency purchase requests, nine approved budgets for contracts, and 1,033 project procurement management plans.

It also reviewed barangay and Sangguniang Kabataan (SK) budgets for City Council action. Barangay annual budget submissions increased from 10 in 2023 to 37 in 2025 before declining to nine in 2026. Supplemental barangay budgets rose from two in 2024 to 25 in 2025, while SK annual budget submissions increased from one in 2023 to 13 each in 2024 and 2025.

Acting City Budget Officer Roseny G. Reyes said the office remains committed to sound fiscal planning and transparent budget management in support of the Archival administration's governance agenda.

The approved appropriations align with Archival's priority programs, including the completion of the Cebu City Medical Center, expansion of free medicine distribution, food security initiatives, housing projects, scholarship and technical-vocational education programs, climate resilience measures such as solar panels, rainwater harvesting and tree planting, as well as governance reforms that include digitized frontline services, streamlined business permit processing, and AI-powered CCTV surveillance.