City Dads Scrap P500M Supplemental Budget

The committee on budget and finance of the city did not recommend for the outright approval of the P500 million second additional budget of the city government as proposed by Mayor Michael Rama.

The five-member committee headed by Councilor Margarita “Margot” Osmeña, is curious on the funding sources that would support the proposed city’s second supplemental budget because they believed that they are not new revenue sources.

Rama endorsed to the City Council, for its approval, the P500-million additional budget of the city for this year that will cover urgent expenses for July to December this year.

The proposal will also include payment of salaries of the hundreds of job-order personnel of the city.

Osmeña argued that since the city’s revenue collections still had not reach its target to cover the P5.89-billion annual budget of the city for 2014, the funding sources certified by City Treasurer Diwa Cuevas cannot be considered as a new income.

She cited provisions of Article 417 of the Implementing Rules and Regulations (IRR) of the Local Government Code, which provides that “new revenue sources” refers to money measure not otherwise considered during the preparation and enactment of the annual budget.” Osmeña said the committee observed that the enactment of Supplemental Budget No. 2 has no basis, except if the city treasurer would justify and will stand that the amount of money collected at this point in the year is over and above the estimated income collection.

“All of the revenue sources identified in the certificate of the city treasurer are not new revenue sources. Furthermore, the supplemental budget of the executive department is not submitted to set aside appropriations in time of public calamity,” she added.

The law provides that in every government budget, an amount equivalent to five percent of the budget, shall be allocated for calamity response and preparedness.

Osmeña, wife of former mayor and congressman Tomas R. Osmeña, further stressed that upon the initial review of the budgetary items proposed by the executive department, the committee came up with questions on the nature and justification of several items. In order for the executive department to shed light over the matter, the City Council had agreed to call for a public hearing next month and invited City Administrator Lucelle Mercado, Budget Officer Nelfa Briones and former city councilor and now Rama’s financial adviser Jose Daluz III.