Mayor Nestor Archival submitted a proposed P15-billion 2027 spending plan for Cebu City, allocating nearly half, or P7.06 billion, to general public services.
Social services account for P4.49 billion of the proposed budget, targeting health care expansion, social welfare programs, housing initiatives, and upgrades for the Cebu City Medical Center.
The city projects funding the budget through P6.66 billion in local tax revenues, a P3.41-billion National Tax Allotment, non-tax revenues, and other expected income sources.
GENERAL public services will consume nearly half of Cebu City’s proposed P15-billion spending plan for 2027, taking the largest share of the budget ahead of health, social welfare and economic programs.
Mayor Nestor Archival submitted the expenditure program to the City Council on Oct. 7, 2026. Under the proposal, the City earmarked P7.06 billion for general public services and P4.49 billion, or roughly 30 percent of the total budget, for social services.
The budget outlines how the local government plans to distribute its resources next year, balancing day-to-day administrative operations with infrastructure development, health care expansion and disaster resilience.
Funding day-to-day operations
The P7.06-billion allocation for general public services is the financial engine that runs the City Government. It covers executive and legislative functions, administrative overhead, public safety and traffic management.
The Office of the Mayor accounts for P3.16 billion of this allocation, a figure that includes special projects, programs and capital outlays for various offices under the mayor’s direct supervision.
Other significant administrative expenses include P1.41 billion for the Department of General Services and P377.09 million to fund the legislative and secretariat functions of the City Council. The City also proposed P340.11 million to maintain peace and order, alongside P335 million to manage local transportation and traffic.
Health care and social welfare priorities
Social services represent the second-largest expenditure at P4.49 billion. This sector funds direct interventions for residents, covering health care, nutrition and community support.
The Department of Social Welfare and Services is set to receive P940.28 million, while the City Health Department is allocated P806.98 million to manage general administration, field programs and barangay health centers. Smaller allocations include P47.22 million for the City Nutrition Office and P42.66 million for the Cebu City Medical Center (CCMC) College of Nursing.
These figures align with Archival’s stated priorities for 2027. The administration intends to use these funds to improve health care access, upgrade the CCMC and expand dialysis, mental health and rehabilitation services. The budget also targets housing initiatives, maternal nutrition and expanded benefits for senior citizens.
Economic support and disaster resilience
Economic services will receive P1.09 billion. The administration plans to direct this money toward food security and agricultural support. Specific interventions include establishing affordable community rice outlets, maintaining demonstration farms, building farm-to-market roads and deploying mobile storage facilities for agricultural goods.
To prepare for natural emergencies, the City set aside P750 million for the Local Disaster Risk Reduction and Management Fund. This represents five percent of the total budget, which local governments are required by law to reserve for calamity response and climate adaptation.
The administration plans to use this disaster fund for flood and erosion control, stormwater and wastewater management and the maintenance of evacuation centers. This reserve fund is entirely separate from the P154.11 million operating budget proposed for the City’s disaster risk reduction and management office.
Beyond these core sectors, the spending plan distributes P851.47 million to the Local Development Fund and provides P750.89 million in financial aid to the city’s barangays.
Paying for the 2027 spending plan
To finance the P15-billion budget, the City expects to collect P6.66 billion in local tax revenues and P3 billion in non-tax revenues.
It also relies heavily on a P3.41-billion National Tax Allotment, which is the City’s automatic share of National Government tax collections. Other projected income streams include P400 million from economic zone shares, P300 million from joint-venture profits, P206 million from hospital operations and P173.58 million from public markets.
These financing figures are only projections and do not guarantee that the City will actually collect the full amount during the 2027 fiscal year. The City Council is currently reviewing the proposed appropriations to ensure the expenditures align with the City’s projected income before finalizing the spending plan. / CAV