ILOILO City – Ilonggos will see one of the city’s most heavily social service-focused budgets in recent years after the Sangguniang Panlungsod approved the P4.5-billion Annual Executive Budget for 2026, an 8.62% increase from this year’s P4.1-billion appropriation.
The spending plan — endorsed by Mayor Raisa Treñas and validated by the Local Finance Committee as “reasonably collectible” — reflects the city’s strongest revenue performance to date, driven by robust business activity and a higher National Tax Allotment (NTA).
More than 55% of next year’s revenues are projected to come from local sources, underscoring what officials described as Iloilo City’s “strengthened fiscal independence.”
Social services take center stage
Sangguniang Panlungsod’s Committee on Appropriations chairman and Majority Floor Leader Rex Marcus Sarabia said the budget was approved “largely faithful” to the executive proposal following detailed department-level hearings — but what stands out is its expanded support for vulnerable sectors.
“There were no major changes because the departments justified their proposals well,” Sarabia said. “What we approved is a budget aligned with the city’s development goals and its capacity to collect revenues.”
He emphasized that Ilonggos will “feel more strongly” the city’s social interventions in 2026, noting that social services will account for 27.09% of the entire budget.
“Ilonggos will really feel the social services in 2026. A big portion is funded by our real property tax collections, and we made sure the budget reflects programs that directly impact communities,” he said.
Welfare programs receive biggest increases
The committee report details sharp increases across several frontline support programs:
* Aid to Individuals in Crisis Situation (AICS): from P12.5 million → P30 million
* Indigent Coffins and Funeral Services: from P4 million → P8 million
* Supplemental Feeding Program: P17.176 million
* Medicines for non-communicable diseases: up 284% to P24 million
* Cash-for-Work for Resilient Communities: P30 million
* College Educational Financial Assistance: P30 million
* Expanded funding for urban biodiversity, anti-rabies programs, and health center upgrades
“These numbers show a clear focus: strengthen support for families, students, senior citizens, and vulnerable sectors,” Sarabia added.
Business tax collections hit record trajectory
The city’s financial outlook continues to improve, with business tax revenues projected to reach P902 million in 2026. Collections have risen steadily from P638 million in 2022 to P966 million as of November 2025.
Real property tax collections also remain strong despite the ongoing 60% discount incentive.
“These trends give us confidence that the city can sustain its programs without overextending financially,” Sarabia said.
How the 2026 budget breaks down
* Personal Services – P1.349 billion (29.98%)
* MOOE – P1.769 billion (39.32%)
* Capital Outlay – P463.9 million (10.31%)
* Financial Expenses: P145.79 million (3.24%)
* Special Purpose Appropriations: P771.65 million (17.15%)
The ordinance ensures full funding for the second tranche of SSL VI, Magna Carta benefits for health and social workers, and higher pay for job hires and COS employees.
City maintains strong fiscal position
Documents show the city holds about P5 billion in cash deposits, keeping debt service at only 5.18% of regular income — far below the 20% legal ceiling.
“Our budget reflects not only the city’s priorities but its financial discipline. Iloilo City is in a very strong position heading into 2026,” Sarabia said.
With the budget ordinance now approved, implementation begins January 1, backed by quarterly financial reviews to ensure efficient spending./PN
