THE CITY Council’s finance committee has recommended approval of the proposed P17.23-billion budget for 2027.
Councilor Danilo Dayanghirang, committee chair on finance, ways and means and appropriations, endorsed the P17,233,374,681 budget during the regular session on Tuesday.
The budget, submitted by Mayor Sebastian Duterte on Oct. 15, had its first reading on Oct. 20, and the committee held hearings on Oct. 28 and Nov. 5.
Projected sources of funds rose by 8.74%, or P1.39 billion, from P15.89 billion in 2026 to P17.28 billion in 2027.
The increase is primarily attributable to the higher projected National Tax Allotment (NTA), together with anticipated growth in locally sourced revenues and the city’s share from economic
Zones,” the report reads.
The city’s National Tax Allotment (NTA) share is projected at P11.23 billion, up 10.75% from P10.14 billion in 2026.
Local sources, on the other hand, are projected at P5.95 billion, up 5.17%.
“The projected increase in locally sourced revenues is primarily attributable to higher anticipated collections from major local revenue sources, particularly business taxes and basic real property taxes,” the committee report reads.
Business taxes are expected to grow from P2.52 billion to P2.69 billion, and basic real property tax from P1.05 billion to P1.11 billion.
Meanwhile, the city’s share from economic zones is projected to increase by P6.85 million from the FY 2026 estimate and represents approximately 0.59% of total projected revenues for FY 2027.
For the economic enterprises, the city’s five public markets, two slaughterhouses, Sta. Ana Port, 11 cemeteries, recreation center, and Magsaysay Park are projected to earn P229.3 million against P184.3 million in appropriations.
The two slaughterhouses, the city crematorium, Panacan Public Cemetery, and the Davao City Recreation Center are projected to spend more than they earn.
The report says P8.75 million from the Bankerohan Public Market’s balance will cover the gap.
“The City Economic Enterprises Office continues to pursue measures to strengthen revenue collection, improve operational efficiency, and enhance the management of these facilities,” the councilor stressed.
The General Fund Proper takes P14.80 billion (85.90 %). The 20% Development Fund gets P2.25 billion, and economic enterprises P184.3 million.
By office, the Office of the City Mayor has the largest allocation at P5.13 billion, or 34.68% of the General Fund Proper. It is followed by the City Social Welfare and Development Office (P1.93 billion), the City Health Office (P1.18 billion), the City Environment and Natural Resources Office (P1.15 billion), and the City Disaster Risk Reduction and Management Office (P1.10 billion).
By sector, general public services receive 37.82%, social services 34.68%, and economic services 27.50%.
Personal services spending of P2.33 billion is 15.58 % of the city’s 2025 regular income, well below the 45-% legal cap.
Plantilla positions also reported a rise from 3,672 to 3,689 with the creation of the Davao City Special Needs Intervention Center for Children under the CSWDO.
The Development Fund covers 91 projects: one non-infrastructure (P49 million for ICT equipment) and 90 infrastructure projects.
Economic development takes 44.64%, environmental development 36.11%, social development 11.53%, and general public services 7.72 %.
The councilor noted that the city has been debt-free since April 2022 and has not allocated an amount for debt servicing.
