P1.9 Billion Baguio City 2021 Annual Budget, Approved on First Reading

An ordinance appropriating the amount of P1.904.4 billion as the city’s 2021 annual budget has been approved on first reading by the City Council. The council has agreed to devote the remaining sessions of the year for the deliberations on the said proposed budget. This update was provided by the Public Information Office of the City of Baguio just on Monday, November 2, 2020.

Sources of Revenues

Under the proposed 2021 annual budget, the sources of revenues that will fund the programmed expenditures include the following:

• Tax Revenues – P422,120,000.00
• Non-tax Revenue – P350,310,000.00
• Share from the Philippine Economic Zone Authority (PEZA) – P125,000,000.00
• Share from Internal Revenue Allotment (IRA) – P1,004,552,458.00
• Share from the Philippine Charity Sweepstakes Office (PCSO) – P2,500,000.00

The Expenditures

The expenditures that had been programmed in next year’s budget include the following:

• Personal services account – 45.19 percent or P640,592,000.00
• Maintenance and other operating expenses – 38.13 percent or P726,110,458.00
• Capital outlay – 1.13 percent or P21,555,000.00
• Development fund – 10.55 percent or P201,000,000.00
• Disaster risk reduction and management fund – 5 percent or P95,225,000.00

2021 Budget Categorized into Sectors

The city’s proposed 2021 annual budget is categorized into sectors defined under the pertinent provisions of the Local government code as:

• General services – 42.71 percent or P813,384,000.00
• Economic services – 23.73 percent or P451,861,000.00
• Social services – 18.01 percent or P343,012,458.00
• Other services – P15.55 percent or P296,225,000.00

Highlights of 2021 Proposed Budget

• Full provision of the statutory obligations for the second tranches of the Salary Standardization Law (SSL) II
  • Including the upgrading of the entry level of nurse positions to Salary Grade 15 pursuant to budget circulars
• Full provision for mandatory appropriations for the 5 percent city disaster risk reduction and management fund and the 20 percent development fund
• Imposition of budget cuts on maintenance and other operating expenses by 11 percent across all departments but the same will not compromise responsive and prompt delivery of basic services
• The identification of priorities under the Annual Investment Plan (AIP) that support the present administration\s 16-point core agenda
• The department budgets proposed are aligned with the development goals of the city with bias to respond to the COVID-19 and similar occurrences

For More News and Updates

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Source: Public Information Office – City of Baguio