Davao City's P17.23-billion 2027 budget passes second reading

Davao City's proposed P17.23-billion budget for 2027 has been approved on second reading by the City Council, according to the head of the council's finance committee, as reported by SunStar.

Councilor Danilo Dayanghirang, chair of the Committee on Finance, Ways and Means and Appropriations, said in a live discussion on Wednesday, Nov. 11, 2026, that the council passed the measure on Tuesday, after his committee reported it back to the floor. Once approved on third reading, Mayor Sebastian Duterte will sign the budget ordinance and forward it to the Department of Budget and Management (DBM) for review.

Dayanghirang said an approved budget allows the city to pay salaries starting January. Without one, the previous year's budget is reused. "But at least, by January, it is already approved," he said in Filipino.

The committee's report shows the city expects P17.28 billion in funds for 2027, an increase of P1.39 billion, or 8.74 percent, from P15.89 billion this year. The National Tax Allotment (NTA) makes up P11.23 billion, or 65 percent, while local sources, mainly business and real property taxes, account for P5.95 billion. About P44.97 million, all from economic enterprises such as markets, slaughterhouses and cemeteries, is left unappropriated.

Under the General Fund Proper, the Office of the City Mayor receives the largest allocation 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, which includes P461.48 million in capital outlay.

The P2.25-billion Development Fund, equal to 20 percent of the NTA, will cover 91 projects across the city's three districts. Environmental development gets about P810.97 million, including P448.62 million for flood control, while road networks are allotted P656.06 million. Dayanghirang also said an additional P42.5 million was set aside for building a University of Southeastern Philippines campus in Paquibato District, a former conflict area.

The committee urged the City Engineer's Office to improve pre-assessment of projects, including site and readiness checks, to reduce implementation delays. Dayanghirang said an inter-department council created by the mayor already evaluates projects before they are funded.

The budget also raises plantilla positions from 3,672 to 3,689, mainly for the new Davao City Special Needs Intervention Center for Children. About 38 percent of positions, or 1,411, were vacant when the budget was prepared.