Baguio City Confident in PHP3.65 Billion 2026 Budget Amid Growing Revenues

BAGUIO CITY – The local government is optimistic about generating its PHP3.65 billion operational budget for 2026, relying on internally generated revenues, its portion of the national tax allocation (NTA), and other mandated sources.

Vice Mayor Faustino Olowan affirmed Thursday that the recently approved PHP3,651,592,560 budget under Ordinance 90-2025 is grounded in practical estimates. "This budget was formulated based on actual collection data from 2024 to 2025, thoroughly reviewed by the city treasurer," Olowan explained. He described the figures as a "conservative estimate" reflecting funds realistically accessible to the city next year.

Olowan highlighted various consistent income streams, including revenues from the newly acquired Maharlika Livelihood Center, rental fees from city-managed commercial stalls, entrance fees from the Botanical Garden, and charges for roadside and designated parking spaces. Crucially, Baguio City benefits from an enhanced share of national tax revenues following the Mandanas ruling, which guarantees local government units 40 percent of total national tax collections, extending beyond internal revenue alone.

Additional revenues come from agencies such as the Philippine Economic Zone Authority and the Philippine Charity Sweepstakes Office. The city government is also actively engaging the Bases Conversion and Development Authority (BCDA) and John Hay Management Corporation to fulfill their commitments to remit Baguio's 25 percent share of lease rentals and allocate funds to city development projects.

Regarding expenditure priorities for 2026, substantial allocations will support social services, the City Engineering Office, the City Environment and Parks Management Office, the City Building and Architecture Office, and the General Services Office. Key areas of spending include personnel costs and waste management, noting the city’s continued reliance on Central Luzon for garbage disposal.

Olowan emphasized fiscal discipline in budget preparation, noting, "There are no insertions or questionable items. Every peso has a specific purpose under the appropriations ordinance." Notably, the proposed budget marks an increase of approximately PHP600 million compared to the current year’s allocation, positioning the city for expanded programs and projects in the coming year.