THE Department of Budget and Management (DBM) 7 stood by its previous decision to declare as inoperative Cebu City’s P6.4 billion budget for this year.
In her letter, DBM Regional Director Carmela Fernan cited Section 324 of the Local Government Code which states that budgets of local government units should include full provision for all statutory and contractual obligations.
She said the Cebu City government failed to include the amortization for the South Road Properties (SRP) loan this year.
The DBM also reiterated the need for the city to already approve a revised annual budget. Rama already submitted a revised budget of P9.8 billion to the City Council.
In their regular session yesterday, Councilor Margot Osmeña released a report on the start of a series of budget hearings for the new annual budget.