‘SEVEN-YEAR SAVINGS ITCH’: City Council taps savings for PHP 1.41-B budget

By Rjay Zuriaga Castor

The Iloilo City Council approved on Wednesday, April 22, its first supplemental budget for 2026 amounting to PHP 1.41 billion with most of the funding sourced from reverted allocations and accumulated savings from regular annual budgets since 2018.

Of the total, about PHP 1.413 billion is allocated under the General Fund, while PHP 566,414 is earmarked for the Special Account of the Local Economic Enterprises Office.

The supplemental budget is primarily funded by savings from previous-year programs, including the General Fund, 20 percent Development Fund, and Local Disaster Risk Reduction and Management Fund, as well as the reversion of continuing and current-year appropriations.

City Budget Officer Viminale Capulso said the supplemental budget significantly increased due to accumulated savings from previous years.

She said the city government was directed by the mayor to review continuing appropriations with remaining balances from 2018 to 2025 and consolidate these unused funds as additional budget sources.

“We were instructed by the mayor to look for the previous continuing appropriations that were implemented but still had balances. We gathered these from 2018 to [2025], and we were able to pool additional sources from them,” she said on Wednesday.

“We were asked by the mayor to find funds because of the emergency crisis. Her priority is social services—fuel subsidy, cash-for-work, livelihood projects—so we reviewed previous allocations, reverted them, and used them as our source,” she added.

A significant portion of the budget is allocated for physical development, including road networks, bridges, and rehabilitation, repair, and concreting of roads in several barangays such as Baldoza in La Paz, Hibao-an Sur in Mandurriao, and Tabuc Suba in Jaro.

The budget also includes multiple drainage system projects in areas such as Molo, Jaro, and Mandurriao to improve flood control and urban resilience.

Funding is also allocated for the construction and improvement of barangay gymnasiums, the development of Ungka Park worth PHP 17.5 million, and the construction of a police substation in La Paz costing PHP 20 million.

Additional allocations include PHP 20 million for construction supplies at Batiano Village and PHP 10 million for land acquisition under the Iloilo City Local Housing Office.

For maintenance and other operating expenses, major allocations include PHP 260 million for garbage collection and disposal and PHP 20.6 million for traffic management.

The city also allotted PHP 70 million for Assistance to Individuals and Families in Crisis Situations and PHP 20 million for medical assistance to indigent persons.

Other funded programs include PHP 30 million for the Cash-for-Work for Resilient Community program, PHP 9 million for the beautification program, and PHP 9.5 million for the sports development management program.

Under personal services, PHP 22 million is allocated for the implementation of the third tranche of the modified salary schedule, along with provisions for terminal leave pay and monetization of leave credits for qualified employees.

Capulso said the salary tranche was not included in the annual budget because priority was initially given to barangay-level projects.

“We were not able to give funds to it in the annual budget because first, during the annual budget, we prioritized barangay projects and we have 180 barangays and the mayor wants that all of them has a specific project to implement so that they can feel the help of the city government,” she said.

She clarified that the barangay infrastructure projects under the supplemental budget are separate from the city’s 2026 development plan.

Capulso added that with a projected surplus, the finance office decided to include the salary tranche in Supplemental Budget No. 1, with implementation expected in August.

On fuel assistance, Capulso said PHP 30 million was allocated for a six-month subsidy program.

“We already had the first tranche and we will give another next month in May for tricycle, jeepneys, and our drivers. We will sustain them for the next six months. We will give subsidies every month,” she said.

She added that beneficiaries for the second tranche will remain the same.

Capulso said the Assistance to Individuals and Families in Crisis Situations fund is being prepared as a contingency measure amid possible external shocks, including the impact of tensions in the Middle East.