PHP 121.84-M TOP-UP: Collection surpluses, savings fund Iloilo City supplemental budget

By Rjay Zuriaga Castor

ILOILO CITY — The Iloilo City Council has approved a PHP 121.84 million Supplemental Budget No. 1 for 2026, funded largely by excess tax and other collections, savings, and the reversion of unused appropriations.

The budget will support the maintenance of public markets, infrastructure projects, and holiday assistance for indigent families, among others.

The supplemental budget totals PHP 121,843,632.84, consisting of PHP 82,377,555.84 for the General Fund and PHP 39,466,077 for the Special Account for Local Economic Enterprises.

A large portion of the General Fund will come from collection surpluses, including PHP 38.77 million representing the city’s share from incremental value-added tax collections for calendar year 2024.

The city also reverted PHP 16.5 million in unused funds from the City Engineer’s Office that had earlier been allocated for price escalation allowances, along with PHP 3.97 million in personal services savings.

The PHP 39.47 million Special Account for Local Economic Enterprises will be funded almost entirely by savings from previous-year programs.

Under the Local Government Code, changes to an approved annual budget may be made only through supplemental budgets backed by funds certified as actually available, which is why surpluses, savings, and reversions dominate the funding side of the measure.

The General Fund will also provide subsidies to local markets, including PHP 8.48 million for the Iloilo Central Market and PHP 1.7 million for the La Paz Public Market.

Both facilities are recent additions to the city’s market network. The Iloilo Central Market reopened its public market section on Oct. 30, 2025, following a redevelopment worth roughly PHP 3 billion undertaken by SM Prime Holdings Inc. under a public-private partnership, which raised its capacity to 850 vendors from 603.

The La Paz Public Market, rebuilt with city funds, held its soft opening on Dec. 16, 2025, with 423 stalls for its 359 existing vendors and its 1930s art deco gateway along Huervana Street preserved.

City Budget Officer Viminale Capulso said the subsidies were needed because the two markets’ collections have yet to meet projected revenues, as not all stalls have been occupied since the facilities are newly operational.

The markets sought assistance from the General Fund to cover utility expenses, she said.

“These subsidies are provided because of the fact that payment of their utility expenses as of this time fell short of their estimated receipts because we have newly operated markets and our stalls are not yet completely occupied. Their collection fell way below their estimated receipts,” she said Wednesday, Aug. 19.

“Eventually, once their income reverts back to normal, they are going to pay back this amount to the General Fund,” she added.

The budget also includes PHP 19.37 million for the operation of the Iloilo New Slaughterhouse, including a PHP 16.28 million transfer of profits to the General Fund and PHP 1.67 million for cleaning and sanitation.

Capulso said the slaughterhouse generated profits beyond what was needed to cover its operating expenses, allowing it to transfer the excess to the General Fund.

“There is an allocation of fund transfer back to the General Fund from the slaughterhouse because our slaughterhouse is earning profit and it has exceeded the amount to cover their operating expenses, so they are going to transfer the profit back to the General Fund,” she said.

Among the major appropriations are PHP 30 million for soil cover at the city’s waste disposal facility in Calajunan, PHP 13 million for the completion of barangay gymnasiums, and PHP 7.5 million for holiday gift-giving assistance to indigent families.

The gymnasium allocation covers PHP 8 million for the completion of the facility in Barangay Mohon, Arevalo District, and PHP 5 million for the one in Barangay Lanit, Jaro District.

The Office of the City Mayor received PHP 18.47 million, broken down into PHP 911,261 for personal services, PHP 227,525 for the Comprehensive Anti-Smoking Program, PHP 4.3 million for capital outlay, and PHP 13.03 million in Special Purpose Appropriations.

The Office of the Sangguniang Panlungsod was allocated PHP 650,700 in capital outlay for the Office of the Vice Mayor, covering information and communication technology equipment, furniture, and fixtures.

Under the Office of the City Environment and Natural Resources Officer, the supplemental budget includes PHP 2 million for the improvement of Mandurriao Plaza and PHP 1.5 million for the construction of multipurpose buildings that will serve as production centers in Barangay San Juan, Molo District, and Barangay Lanit, Jaro District.