The Cebu City government is grappling with a severe financial crunch as the delayed approval of its P5.3 billion 2024 annual budget has triggered an automatic spending reenactment, effectively freezing new government expenditures and creating operational chaos.
Budget Impasse Forces Spending Freeze
According to City Budget Officer Jerone Castillo, the failure to pass the 2024 budget before the December 31, 2023 deadline has activated provisions under Section 323 of the Local Government Code. This legal technicality means the city can only spend at 2023 levels and is prohibited from funding any new programs, projects, or activities.
"We cannot spend for anything new," Castillo emphasized during a press briefing. "The only thing we can spend on are the existing programs from last year."
Immediate Impact on Government Operations
The budget delay has created immediate operational challenges across city departments:
- Salary payments for new hires and promoted employees are suspended
- Funding for newly created positions remains frozen
- Essential maintenance and operating expenses for new initiatives cannot be processed
- Planned infrastructure projects face indefinite postponement
Legal Limitations and Financial Constraints
Castillo clarified that the reenacted budget operates under strict limitations. While personnel services for existing employees continue, the city cannot exceed the monthly average expenditures from the previous year. This creates significant constraints for departments that had planned expansion or new initiatives for 2024.
"The reenacted budget is only good for the first quarter," Castillo warned, highlighting the temporary nature of the current financial arrangement.
Political Standoff Behind the Delay
The budget impasse stems from a political standoff between Mayor Michael Rama and the City Council. The legislative body, dominated by opposition members, has repeatedly deferred discussions on the proposed P5.3 billion budget, citing various concerns and procedural issues.
Councilor Noel Wenceslao, chairperson of the committee on budget and finance, acknowledged the seriousness of the situation but maintained that proper legislative procedures must be followed.
Race Against Time
With the reenacted budget only viable for the first quarter of 2024, city officials face mounting pressure to resolve the political deadlock. The continuing delay threatens to disrupt essential public services and could impact the city's overall development trajectory.
As the stalemate continues, residents and government employees alike await a resolution that would unlock the frozen funds and restore normal operations to Cebu City's governance machinery.
