- P15.8-B allocation higher than 2025 annual budget
THE CITY Council approved the Annual Budget for Fiscal Year 2026, totalling P15,846,054,435, representing a 10.8% increase from the 2025 budget of P14.3 billion.
During its special session on Thursday, Nov. 13, Councilor Danilo Dayanghirang, chair of the committee on finance, ways and means, and appropriations, said the higher 2026 budget can be attributed to the 14.86% increase in the City’s National Tax Allotment for 2026, equivalent to P1,312,237,121, and the projected 4.26% increase in locally sourced revenues at P230,773,600.
The city’s budget sources include national tax allotment amounting to P10,140,378,300; local revenues of P5,654,078250, and P95 million share from economic zones.
The bulk or 86.16% (P13,652,181,390) is allocated for the General Fund covering the expenditures for personnel services, maintenance, and other operating expenses (MOOE), and capital outlays of the various departments, offices, and units of the city government.
A 12.80% or P2,028,075,660 is allocated for the Development Fund covering the infrastructure projects to be implemented for development infrastructure projects for general public services, social development, economic development, and environmental development.
Meanwhile, the remaining 1.04% or P165,807,385 is allocated for Economic Enterprises, which will support the operation of five public markets: Mintal, Toril, Calinan, Bankerohan, and Agdao; two slaughterhouses: Ma-a and Langub; operation of Sta. Ana Port; operation of 11 public cemeteries; operation of the Davao City Recreation Center (DCRC); operation of Magsaysay Park.
During its second reading on Tuesday, the August body did not raise questions and unanimously approved the measure.
Dayanghirang shared the committee report, in which the Acting Mayor Sebastian Duterte recommended the passage of the annual appropriations.
“Mayor Sebastian is trying to balance everything through consultation and consensus process,” the councilor said.
Dayanghirang said the mayor prioritized poverty alleviation, infrastructure, solid waste management, education, scholarship program, agriculture and agribusiness, transportation planning, peace and order, disaster risk reduction and mitigation, ICT, and tourism development.
The Office of the City Mayor has the largest allocation of P5.008 billion, or 36.69% of the total budget.
Of this amount, this will be divided among various offices, including but not limited to Davao City Treatment and Rehabilitation Center for Drug Dependents, Development program of the 182 barangays, and units such as the Ancillary Services Unit, Internal Audit Service Unit, Senior Citizen Affairs Office, Vices Regulation Unit, among others.
