By Art Jimenez
Starting January 2021 and unless Mayor Jerry Treñas changes his mind, Iloilo City will operate on nearly the same 2020 P2.7 billion budget.
Citing “uncertainties,” the mayor told The Daily Guardian, “The budget will remain at the same level as last year because we don’t know what will happen. We saw businesses close down in the city, so we do not expect any increase. We even see a decrease.”
Certainly, the present pandemic-laden setting our city finds itself in is full of uncertainties. The city had thrown in practically all its resources against COVID-19 like executive minds, time, manpower, money, materials and mobilized generous donors, government health facilities and amelioration funds. And it seemed victory was at hand. But no.
The level of cooperation at the inner barangay level shows in the resulting roulette of community quarantines Iloilo City was placed under almost every month. And this is frustrating to say the least, especially for our city leadership. And that is why the view that the future brings so much “uncertainties” is understandable.
However, it behooves the city planners not to leave our fate to what the future could slam dunk on the city or bless it with in 2021. It is their duty to consider all the city’s inner strengths and weaknesses, the threats and opportunities that the external environment holds (that’s the old SWOT analysis LGUs have been trained to do since way back) and to come up with their usual strategic plan that translates to monetary amounts, called the budget.
One problem of having a near mirror-like appropriations ordinance is some things could be left out in the coming year. One is funding coronavirus-related measures. Why? Because the dreaded deadly disease was discovered in our country only after all the local and national budgets have been passed and put in full force and effect.
And that is why the Bayanihan to Heal as One law was passed quite hurriedly to allow the realignment of unspent appropriations in the previous year’s budget.
As for Iloilo City, part of its realignment went to infrastructure projects to provide jobs for the workers displaced by the ensuing quarantine shutdowns.
Nonetheless, I am sure City Hall will appropriate some amounts contra COVID-19 even if it could leave the bulk of the anti-pandemic measures to the Department of Health and the amelioration side of assisting failing/failed businesses and displaced employees to the National Government.
In so doing, it would be observant of the DBM “Guidelines on the Preparation of the FY 2021 Annual Budgets of LGUs” insofar as aligning its “development plans, investment programs, and budgets to the economic and social recovery plans that may be adopted by the National Government in relation to or after the Coronavirus Disease (COVID-19) pandemic.”
By the way, it saddens not a few of us that, according to the Hizzoner, “The bulk of the budget is still allocated for the salaries and benefits of city government workers, garbage collection, operations of landfills, and maintenance of public infrastructures such as streetlights, sidewalks, and plazas.”
Will there be a budget for Dinagyang 2021 or will our internationally famous annual festival be postponed?
On a larger scope, how can our city induce economic growth in 2021 using its 2020 resources?
See, even at just three percent (3%) nominal inflation rate, the city would need an additional P80 million in 2021 just to stay where it was the year previous. Viewed from the other side, funding for necessary expenses –affected by inflation—would be short by at least P80 million.
Iloilo City’s economic growth could be likened to a bicyclist on an incline. The biker needs to keep pedaling to move up, accelerate, and climb the heights. Once he falters, hesitates, pauses, decelerates, or worse, stops, the biker would naturally backslide and eventually… well, you know the rest.
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The budget situation across the Strait somewhat mirrors that of Iloilo City’s.
Bacolod City Mayor Evelio Leonardia submitted to the local legislature a 2021 proposed budget of P2.6 billion. The amount is 13.3 percent lower than its 2020 P3.0 billion budget. He attributed the budget thinning to the business slowdown caused by the pandemic.
Leonardia informed the media that his budget prioritizes these mundane services: health, solid waste management, social welfare, anti-drug campaign, and improved traffic management.
Investment experts often say the best time to expand one’s business is when it’s down because keeping it as it is only pulls it down deeper into a pit where there’s no escape.
I hope everybody gets the drift.
And here’s a final word from an oft’ quoted Canadian publisher, “Uncertainty and mystery are energies of life. Don’t let them scare you unduly, for they keep boredom at bay and spark creativity.”
