Baguio: The city government is confident it can generate the PHP3.65 billion operational budget for 2026 through internally raised revenues, its share of the national tax allocation (NTA), and other mandated income sources. Vice Mayor Faustino Olowan stated that the council-approved PHP3,651,592,560 budget under Ordinance 90-2025 is 'realistic.'
According to Philippines News Agency, Olowan indicated that the budget was based on the actual 2024-2025 collections vetted by the city treasurer. He described the budget as a conservative estimate, emphasizing that the necessary resources would be accessible for 2026. Olowan highlighted various steady revenue streams, including the newly turned-over Maharlika Livelihood Center, rental fees from commercial stalls, Botanical Garden entrance collections, and parking charges. Additionally, the city's increased NTA share under the Mandanas ruling, which grants local government units a 40 percent share of all national tax collections, is expected to contribute significantly.
The city also benefits from income generated by the Philippine Economic Zone Authority and the Philippine Charity Sweepstakes Office. Olowan mentioned ongoing efforts to ensure that the Bases Conversion and Development Authority and the John Hay Management Corp. fulfill their obligations to remit Baguio's 25 percent share of lease rentals and allocate a portion of revenues for city development projects.
For the upcoming year's budget, a significant portion of appropriations is allocated to social services, the City Engineering Office, the City Environment and Parks Management Office, the City Building and Architecture Office, and the General Services Office. These allocations prioritize personnel services and waste management, as the city continues to transport garbage to Central Luzon. Olowan assured that the budget was crafted strictly according to the city's revenue capacity, with no insertions or questionable items, ensuring that every peso has a specific purpose under the appropriations ordinance.
The 2026 budget is approximately PHP600 million higher than this year's annual allocation, aligning with Baguio's growth and development plans.
