DAVAO CITY – The 21st Davao City Council approved the proposed Fiscal Year 2025 Supplemental Budget No. 2 amounting to P881,074,646.71, covering the general fund proper, the development fund, and the city’s economic enterprises, on second reading on Tuesday, Dec. 2, at the Sangguniang Panlungsod.

According to the report obtained from the office of Councilor Danilo Dayanghirang, chairperson of the Committee on Finance, Ways and Means, and Appropriations, the measure will soon move to third and final reading after the committee endorsed the proposal in its entirety through a committee report submitted to the plenary.

The SB2 will be sourced from the surplus of CY 2024 operations, totaling P617,035,493.92, consisting of the General Fund Proper with a budget of P605,868,822.59 and Economic Enterprises (operation of markets) with P11,166,671.33.

Another source is reversion of appropriations, totaling P264,039,152.79, consisting of the General Fund Proper with P10,276,054.13 budget in the current year and P338,414.21 in the prior year, and Development Fund with prior years sourced from the General Fund Proper Transfer – P169,732,863.48 and prior years sourced from the 20 percent development fund – P83,691,820.97.

Dayanghirang noted that the 2024 surplus accounts for 70.03 percent of the total sources of funds, while the reversion of current and prior years’ appropriations contributes 29.97 percent, as certified by the Local Finance Committee.

Acting Davao City Mayor Sebastian Duterte, who endorsed the proposed budget to acting Vice Mayor Rodrigo Duterte II and members of the City Council on Nov. 20, said the items were “very essential and urgently needed” to sustain city programs and projects.

The City Development Council earlier issued Resolution No. 10, Series of 2025, favorably endorsing the reversion of appropriations as a funding source for the supplemental proposals.

Based on the report, the entire amount of P881,074,646.71 is fully appropriated, leaving no unappropriated balance. The General Fund Proper will receive the largest share, at P786,216,154.41, followed by the Development Fund with P83,691,820.97 and Economic Enterprises (operation of markets) with P11,166,671.33.

Under the General Fund Proper, the largest allocation is made to the City Environment and Natural Resources Office, at P407,930,000.00, equivalent to 51.89 percent of the general fund component. The amount will finance the procurement of 20 10-wheel garbage compactor trucks, three bulldozers, two hydraulic excavators, and one three-wheel cargo motorcycle for garbage collection. It will also augment the current budget for environmental and sanitary services.

The City Social Welfare and Development Office gets the second largest share at P211,140,980.00, or 26.86 percent of the general fund proper. The funds will support social preparation activities and programs involving indigenous peoples, older persons, Persons with Disabilities, solo parents, Overseas Filipino Worker families, children in need of special protection, out-of-school youth, and other socially disadvantaged groups, as well as augment existing CSWDO appropriations.

The City Engineer’s Office is allotted P108,246,500.00, representing 13.77 percent of the general fund proper. Part of the amount—P16 million—is earmarked for a wheel loader, while the bulk will finance infrastructure projects.

Other offices receiving allocations under the General Fund Proper are the City Mayor’s Office, Public Safety and Security Office, Sangguniang Panlungsod Office, City Administrator’s Office, Davao City Housing Office, General Services Office, City Accountant’s Office, City Assessor’s Office, City Legal Office, City Disaster Risk Reduction and Management Office, City Health Office, and City Agriculturist Office.

For the Development Fund and Economic Enterprises, the entire P83,691,820.97 under the 20 percent Development Fund will finance development projects pursuant to Section 287 of the Local Government Code and in accordance with the Department of Budget and Management, Department of Finance, and Department of the Interior and Local Government Joint Memorandum Circular No. 1, Series of 2020.

An allocation of P11,166,671.33 under Economic Enterprises is intended for the Agdao Public Market, specifically to cover a one-year insurance policy for fire, lightning, and full earthquake risks for the market building under the Government Service Insurance System.

The report also notes an interfund transfer from the Development Fund to the General Fund Proper, amounting to P169,732,863.48, sourced from the reversion of prior-year appropriations, to support both non-infrastructure and infrastructure projects under the general fund.

Following a committee hearing on Nov. 26 at the Sangguniang Panlungsod, the Committee on Finance, Ways and Means, and Appropriations recommended the approval of both the statement of sources of funds and the supplemental appropriations, as well as the passage of an ordinance granting legislative authority to SB2.

Dayanghirang’s committee further recommended that all disbursements comply with existing budgeting, accounting, and auditing rules, as well as the guidelines of the DBM, the Commission on Audit, the Government Procurement Reform Act, and other applicable laws and directives.

The committee chairperson signed the report along with Vice Chairperson Councilor Myrna G. L’Dalodo-Ortiz, and members Councilors Ragde Niño D. Ibuyan, Diosdado Angelo Junior R. Mahipus, Vice Mayor Duterte, and Bai Hundra Cassandra Dominique N. Advincula as ex officio members.