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Annual fund represents a 17% increase over 2019 allocation

Lawmakers this week approved on third reading the P10.3 billion annual budget for 2020. The amount represents a 17% increase from last year’s roughly P8.7 billion.

The total amount for the 2020 budget is P10,300,035,968.

Every year’s budget is divided into three parts, namely General Fund Proper, the Development Fund, and City Executive Enterprises. The legislative body allocated P7.868 or 76% for the General Fund.

Meanwhile, P2.291 billion or 20% of the annual fund goes to the Development Fund, which leaves the rest for the City Executive Enterprises.

Councilor Danilo Dayanghirang, who chairs the finance committee, attributed the increase to better collections for local sources and a higher internal revenue allotment.

“This was endorsed by the mayor. We conducted committee hearings for seven days so that this will be approved already,” he said. “Some fundings were allocated to support the city government.”

He also revealed that some of the funds were allocated to support the peace and order campaign of the city.

“If you remember, all barangays were provided with barangay police auxiliary, considering that we have insufficient policemen. Barangay captains were authorized to hire barangay police auxiliaries,” he said.

“Task Force Davao personnel were also given honorarium by the city government. Those TFD personnel who man areas in Lasang, Calinan, and Toril were given honorarium,” he said.

IRA dependent

However, the city remains dependent on IRA, representing around P5.5 billion over local collections of around P10.3 billion.

National government funding still accounts for a higher source of the city’s fund. Internal revenue percentage is still higher than local sources, at 54% compared to 46%, respectively.

However, the figures reflect a slight dip in internal revenue funding and a slight increase in local sources.

In 2019, the internal revenue allotment is one percentage point lower compared to last year’s 55%. Last year, the city used to have 45% of its budget funded by local collections, with an increase of 46% this year.

According to the finance chair, Economic Enterprises account for 1.35% of the city’s 2020 budget, with the economic enterprises budget divided into the operations of the city’s slaughterhouse, Magsaysay Park, Sta. Ana Port, Davao City Recreation Center, cemeteries, and Pasalubong Center.

Dayanghirang said among the highest allocations is P300 million for social services, which includes the city’s flagship Lingap fund.

He said that the medicines cost almost P2 million per day. “That is how big the city is paying for the medicines,” he said.

Alongside national services such as the Malasakit Center and assistance from the Philippine Charity Sweepstakes Office, the city could afford to budget around P2 million per day, Dayanghirang said.

“We also allocated bigger funds or budget for the City Council, for the councilor’s employees. Also, if there is an additional district, then that means more employees will be given wages,” he said.

The City Council, meanwhile, adjourned for the year with the last session on Wednesday morning.

(Yas D. Ocampo and Samantha T. Burgos)

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