Iloilo City budget tagged as 'inoperative'

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

ILOILO CITY — The 2025 annual budget of this city has been declared "inoperative in its entirety" by the Department of Budget and Management (DBM) due to an incorrect computation of its National Tax Allocation (NTA).

The miscalculation originated from an internal miscommunication at the City Budget Office.

While the DBM sent a letter with the correct NTA share on June 27, 2024, the information was not properly relayed to the budget officer handling the 2025 budget preparation.

As a result, the city government based its budget on the initial NTA estimate instead of the updated figures from the DBM.

City Budget Officer Viminale Capulso explained on Wednesday that the 2024 NTA share was P1,453,190,044 and was estimated to increase by 18 percent to P1,714,764,252 for 2025.

However, the actual NTA from the DBM was P1,723,939,468 — creating a discrepancy of plus P9,175,216.

This miscalculation resulted in insufficient allocations for key funds mandated under the Local Government Code, including the 20 percent Development Fund, the 5 percent Local Disaster Risk Reduction and Management Fund (LDRRMF), and the 1 percent Local Council for the Protection of Children Fund.

Consequently, the DBM ruled the budget inoperative, necessitating revisions to align with the correct figures.

The Iloilo City Council swiftly rectified the budget during its regular session on Wednesday, after which it will be resubmitted to the DBM for review. Once approved, the budget will be retroactively implemented from Jan. 1, 2025.

Following adjustments, the total 2025 annual budget increased to P4,143,175,216, up from the P4.134 billion approved by the Iloilo City Council on Nov. 20, 2024. The revised allocations include an increase in the 20 percent Development Fund from P342 million to P344 million, the LDRRMF from P206.7 million to P207.158 million, and the Local Council for the Protection of Children Fund from P17.147 million to P17.239 million.

The adjustments also resulted in additional funding for previously unfunded projects. Notably, P6,589,660 has been allocated for drainage construction, rehabilitation, and repair at La Paz Plaza, while P200,000 has been set aside for the Philippine Councilors' League.

"There is no damage. We consider it actually a happy problem because the amount increased so we have additional funds to support our project [...] With these adjustments we now have the resources," said Capulso.

To prevent similar issues in the future, Capulso said a separate logbook has been created exclusively for DBM communications, and a new records officer has been designated to ensure proper documentation.

Staff must also affix their initials when relaying information to confirm receipt of documents and enhance accountability.