Mayor: Baguio’s fiscal condition remains good

By Aileen. P. Refuerzo

BAGUIO CITY – The city government’s fiscal standing remains stable despite the recent calamities and the impending reduction of the city’s share from the Internal Revenue Allotment (IRA) next year, Mayor Mauricio Domogan said last week.

The mayor said the city has remained debt-free with an outstanding credit standing that make the city eligible for loans from banks and credit institutions should it seek fund sources to finance large-scale development projects .

The mayor, however, said that despite this bright financial condition, city executives opted for a conservative increase in the 2012 budget in anticipation of the IRA cut.

The mayor said that the executive budget is expected to be pegged at just “a little more than P1 billion” to make it realistic in view of the expected reduction of around P30-P40 million from the IRA share.

The city’s current budget is P1,092,095,000.

He said the budget cut is expected to affect the 20 percent development fund that finances the city’s development projects including those in the barangays prompting the City Development Council that undertakes the screening of the projects to select only the very important and immediate ones out of the pool of projects submitted.

The mayor however said that the city hopes to offset the IRA cut when it finally collects its P125 million tax share from the Philippine Economic Zone Authority (PEZA) operations along with its share from the lease rental of Camp John Hay which is currently in the works via a new restructuring agreement between the Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corporation (CJHDevCo).

The mayor said the executive budget along with the Annual Investment Plan (AIP) will soon be submitted to the city council for approval.

The IRA shares of cities had been reduced with the inclusion of 16 new cities into the fold following the Supreme Court decision upholding the constitutionality of the Republic Acts converting the 16 municipalities into cities last April.

The mayor said the 2012 budget framework will be anchored on the thrusts set for 2012 by the city government as aligned with the programs of the national government.

The said thrusts as spelled out by Domogan during his State of the City Address were maintenance of integrity of the environment; sustained economic growth; poverty reduction and empowerment of the poor and the vulnerable; accountable and participatory governance; and safe and resilient city.