BUDGET FOR THE POOR?: P4.5-B Iloilo City budget approved, with bigger support for indigents

By Rjay Zuriaga Castor

The city government of Iloilo is ramping up investments in public welfare next year, approving a PHP 4.5 billion budget that channels a larger share of resources toward social services and assistance for indigent residents.

The City Council approved the budget on Wednesday, following a series of public hearings conducted by the Committee on Appropriations from Nov. 17 to 21.

The 2026 budget reflects an 8.62% increase from the PHP 4,143,175,216 allocated in 2025.

The approved budget for the Special Account of the General Fund, which supports the Local Economic Enterprise, is PHP 83,967,794.

“What I am impressed with in the 2026 annual budget is that the public will already feel the help of the city government because almost PHP 80 to PHP 100 million has been appropriated for social services and assistance to our indigents,” Councilor Rex Marcus Sarabia, chairperson of the Committee on Appropriations, said on Wednesday.

Sarabia cited the “controversial” real property tax increase, but stressed that the additional revenues are now translating into “direct and personal” services on the ground.

The committee report showed that general public services received the largest share at 43.84%, followed by social services at 27.09%, economic services at 17.66%, and other programs at 11.41%.

In the 2026 budget, the appropriation for Aid to Individuals in Crisis Situation was increased from PHP 12.5 million to PHP 30 million to serve a higher number of beneficiaries.

This aid traditionally covers educational, medical, travel, food, and other forms of support.

Allocation for indigent coffins and funeral services was also doubled, from PHP 4 million to PHP 8 million.

A PHP 3 million budget was also allocated for the ATIPAN Center, a flagship one-stop shop of the city government offering financial, burial, livelihood, education, health, and other social services.

The Supplemental Feeding Program for daycare children below five years old received PHP 17 million.

The allocation is pursuant to a memorandum of agreement with the Department of Social Welfare and Development.

The Local Finance Committee projected that 55.13% of next year’s income will come from local sources, while 44.87% will be sourced externally, including from the National Tax Allotment (NTA).

The city’s NTA share is expected to rise to PHP 1.97 billion in 2026, up by PHP 250 million from the 2025 allocation, due to higher national revenues collected in 2024.

A significant portion of the 2026 budget will go to personnel services, which account for 29.35% of total expenditures.

Funding has been set aside for the second tranche of the Salary Standardization Law VI, Magna Carta benefits for health and social workers, a PHP 7,000 medical allowance for plantilla personnel, and new positions across several city departments.

“The city government remains in a sound financial condition, is capable of fully servicing its existing debts, and continues to operate well below its borrowing capacity,” the Committee on Appropriations report read.