BAGUIO CITY – The Cordillera Administrative Region (CAR) office of the Department of Budget and Management (DBM) here held in abeyance the approval of the P1.1 billion executive budget of the city government this year since it failed to present an approved annual investment plan (AIP) to serve as a basis for the disbursement of public funds for infrastructure projects.

Under government budgeting rules, local governments are required to present a resolution formally approved by the City Council stating its conformity with the investment plan submitted by the local chief executive, thus, stipulations that such plan was approved in principle is not accepted.

The city mayor’s office could not get the approval of the city’s 2010 annual investment plan because of the failure of the local leadership to unite with city councilors on the direction of the local government.
The failure of the DBM to approve the city’s executive budget will eventually result to the suspension in the implementation of all lined up infrastructure projects and other services until such time that the city government will be able to satisfy the major requirement in budgeting.

The City Council wants the local chief executive to submit the final list of identified priority development projects for this year which will contain the P2.4 million worth of projects for each councilor but the same has never been fulfilled up to the present.

The Local Government Code allows the concerned local legislative body to approve the annual budget with its corresponding annual investment plan for the first 90 days of the calendar year or else the concerned local government will operate on a reenacted budget.

In this year’s budget, the city government will have a beginning balance of P120 million with local taxes generated amounting to P277.5 million and service and business income of P38.1 million and P59 million, respectively.

The other components of the city’s budget include P411.9 million from the Internal Revenue Allotment (IRA), P14.8 million from permits and licenses as well as other income amounting to P420.2 million, while the additional P15 million will be included in the final budget.

Earlier, the City Council decided to propose an increase in the city’s executive budget this year primarily to fund the implementation of barangay-based projects in the city’s 128 villages which deserve a share from the city government’s increasing income.