Cebu City Mayor Michael Rama is seeking a P100-million supplemental budget, of which P78 million would go to paying bonuses for the city government’s 5,000 employees.
But City Treasurer Diwa Cuevas said they’re having a hard time looking for sources to fund the supplemental budget.
“Because of DBM guidelines, we are having difficulty (identifying fund sources). We have to consider the findings of DBM. They still have no answer to our motion for reconsideration,” Cuevas told reporters.
In February this year, the DBM regional office gave its opinion on the city’s P400-million SB 2 last year.
It said the retained operating surplus and reversion of accounts can’t be considered as fund sources. This has been used by the city in previous SBs.
Cuevas said the DBM’s opinion made it hard for Cebu City to look for sources of funds for the additional budget. She said they have to look for actual cash to back it up.
She said she requested City Hall’s department heads to submit to her office a report on their unexpended balances and budgetary allocations this year which can be realigned and used to cover the SB 1.
The department heads have yet to submit their reports to her office.
“They say that they need the budget but we have to also consider the bonuses for the employees. I’m giving them within the week to submit their reports. I really have to pressure them,” Cuevas said. The remaining P22 million will cover obligations from previous years.
The bonus is covered by Executive Order (EO) 181 signed by President Benigno Aquino III last month.
The order grants a one-time productivity enhancement incentive (PEI) to all government employees equal to one month’s salary.