BAGUIO CITY (Dec. 15) — The city council may approve a total annual budget of P740 million for the year 2006, but this may not be passed until the year ends. Compared to the current year’s P712 million, next year’s budget is a show of optimism that the city would earn more.

A re-enacted budget may be utilized by the local government unit for its operations in the first few months of 2006, if the annual budget is not approved until the end of the month.

Budget deliberations have been on going since the start of December but the council could not act on the budget because the needed proposed executive budget from Mayor Braulio D. Yaranon is not yet handed to the legislative body.

Department heads will be summoned to the council to shed light on their respective department budgets, Councilor Edilberto Tenefrancia told the media.

In an interview with members of the local finance committee, Nordis gathered that almost 38% or P270,877,708 of the 2006 proposed annual budget of P730 million would be spent on personnel services. Another 34% or P248,178,124 goes to maintenance and other operating expenses, while capital outlay gets 11% or 80,695,500. Only 10% will go to non-office expenditures while 7% is allotted to development fund.

City Budget Officer Leticia O. Clemente said departmental budget hearings are being launched to determine how much would be allotted to each department.

“Their operational budgets will depend on their priority programs and projects in 2006,” Clemente told Nordis. She said the local government code mandates that not more than 46% of the total annual budget of any local government unit shall be allotted to salaries and other benefits of personnel, but this item gets the bulk in the 2006 budget.

City Treasurer Thelma B. Manaois is optimistic that there will be sufficient income for the city next year as projected. The statement of fund operation carried a beginning balance of P59 million and a projected income of around P680 million.

Earlier the finance committee appeared in the city council session to enlighten the councilors on the financial status of the city before the council ruled in favor of the proposed budget.

Tenefrancia said it is better for the city to approve a bigger budget to ensure growth, referring to income that will back up the expected expenditures. # Lyn V. Ramo for Nordis