ILOILO City – The Iloilo City Government is proposing a P4.5-billion budget for 2026, with city officials emphasizing that the bulk of the spending plan will go toward improving social services and ensuring transparency amid growing public scrutiny of government finances.
Councilor Rex Marcus Sarabia, chairperson of the Sangguniang Panlungsod’s Committee on Appropriations, said the proposed budget, now under review, will be subjected to rigorous hearings before approval.
“We will study this thoroughly and conduct hearings. This is still a proposal from the executive — it’s not yet final,” Sarabia said. “If there are adjustments or cuts, we will look into their basis. Everything can still be reviewed during the supplemental budget process.”
He added that the P4.5-billion plan — an 8.62-percent increase from this year’s P4.2-billion allocation — marks a modest rise compared to past years when the city’s annual budget jumped by as much as P700 million.
“Considering the public sentiment today, especially with trust in government being a national issue, we will ensure that this budget is examined with transparency and accountability,” he said.
Social and Economic Priorities
The proposed spending plan allots P1.22 billion (27.09%) for social services, including health, education, and welfare programs.
Aid to Individuals in Crisis Situation (AICS) is set to more than double from P12.5 million to P30 million, while educational financial assistance for college students will rise by 50 percent.
The city also earmarked P30 million for the “Cash-for-Work for Resilient Communities” program under the Public Employment Service Office (PESO) and approved a 100-percent increase in funds for coffins and funeral services for indigent families.
Other new or expanded allocations cover daycare improvements, SOGIE promotion, Barangay Outreach, rice subsidies for city and district jails, housing projects, and medicines for non-communicable diseases — the latter seeing a 284-percent budget hike.
Boosting Local Revenue and Enterprise Operations
Mayor Raisa Treñas’ administration expects to generate 55.13 percent of the total revenue locally, with tax receipts projected to rise from P2.09 billion to P2.16 billion. The rest will come from external sources, primarily the city’s National Tax Allotment (NTA), which is set to increase by 6.04 percent to P1.97 billion.
The city anticipates P83.97 million in income from public markets and slaughterhouse operations — a 33-percent jump from 2025.
The Iloilo Terminal Market and Central Market remain top earners, while the Arevalo Market posted the fastest revenue growth at nearly 16 percent.
Balanced Spending Structure
The 2026 budget allocates 43.84 percent for general public services, 17.66 percent for economic services, and 11.41 percent for other special appropriations. By expenditure type, 39.92 percent will go to Maintenance and Other Operating Expenses (MOOE), 29.98 percent to personal services, and 10.31 percent to capital outlay.
Funding has also been reserved for projects aligned with the city’s “Rise to Action” framework — including the Atipan Center, the Public-Private Partnership (PPP) Unit, gastronomy tourism, and urban biodiversity programs.
Transparent Deliberations Ahead
Sarabia underscored that the legislative review will be open and deliberative: “We will allow every member of the council to express their views — it could be a long hearing, but it’s necessary to maintain public trust.”
The proposed P4.5-billion 2026 annual budget is currently under scrutiny by the Committee on Appropriations and will later be endorsed to the plenary for final deliberation and passage./PN
