Council finance panel recommends approval of Davao City's P17.23-billion 2027 budget
The proposed spending plan relies on a larger national tax share and higher local tax collections, and sets aside no money for debt payments because the city reports no debt.
The Davao City Council's finance committee has recommended approval of the city's proposed P17.23-billion budget for 2027, according to Mindanao Times.
Councilor Danilo Dayanghirang, who chairs the committee on finance, ways and means and appropriations, endorsed the P17,233,374,681 spending plan during the council's regular session on Tuesday. Mayor Sebastian Duterte submitted the budget on Oct. 15. It had its first reading on Oct. 20, and the committee held hearings on Oct. 28 and Nov. 5.
The city expects its sources of funds to grow by 8.74 percent, or P1.39 billion, from P15.89 billion in 2026 to P17.28 billion in 2027. Most of the increase comes from the city's National Tax Allotment, which is projected to rise 10.75 percent to P11.23 billion. Locally sourced revenues are expected to reach P5.95 billion, up 5.17 percent. The committee report credits this mainly to higher expected collections from business taxes, projected to rise from P2.52 billion to P2.69 billion, and basic real property tax, from P1.05 billion to P1.11 billion. The city's share from economic zones accounts for about 0.59 percent of projected revenues.
The city's economic enterprises, which include five public markets, two slaughterhouses, Sta. Ana Port, 11 cemeteries, a recreation center and Magsaysay Park, are projected to earn P229.3 million against P184.3 million in appropriations. However, the report said the two slaughterhouses, the city crematorium, Panacan Public Cemetery and the Davao City Recreation Center are expected to spend more than they earn. P8.75 million from the Bankerohan Public Market's balance will cover the shortfall.
The General Fund Proper accounts for P14.80 billion, or 85.90 percent of the budget. The 20 percent Development Fund receives P2.25 billion and covers 91 projects, 90 of them infrastructure, plus P49 million for ICT equipment.
Among offices, the Office of the City Mayor receives the largest share at P5.13 billion. It is followed by the City Social Welfare and Development Office at P1.93 billion, the City Health Office at P1.18 billion, the City Environment and Natural Resources Office at P1.15 billion, and the City Disaster Risk Reduction and Management Office at P1.10 billion.
Spending on personnel totals P2.33 billion, or 15.58 percent of the city's 2025 regular income, well below the 45 percent legal limit. Plantilla positions will increase from 3,672 to 3,689 with the creation of the Davao City Special Needs Intervention Center for Children under the social welfare office.
Dayanghirang noted that the city has been free of debt since April 2022 and has therefore allocated no funds for debt servicing.
Why it matters for Davao
The budget sets how much Davao City will spend in 2027 on social welfare, health, environment, disaster response and 90 infrastructure projects. Part of it depends on residents' and businesses' tax payments, which the city expects to rise.
This article was written by the DavaoNews desk with AI assistance, using reporting by Mindanao Times. Facts come from the original report, which we credit and link below. Our editorial policy
Discussion (0)
Sign in with Google to join the discussion.
Sign in to commentNo comments yet. Start the conversation.