Senator Pimentel Frowns on Cagayan de Oro’s 2009 Annual Budget

November 25, 2008

By Lizanilla J. Amarga

A former Cagayan de Oro city mayor and local opposition leaders lamented how the city government is now spending more on paying off its debts rather than allocating more for the health and social services of city residents.

Senator Aquilino “Nene” Pimentel, Jr. who served as city mayor of this city said the increase in the debt servicing from P195 million or 15 percent in 2008 to P252.5 million or 18 percent in 2009 is going to hit most city residents where it hurts the most – their health.

He said this is evident on how despite the increase of the annual budget from P1.3 billion to P1.4 billion, the budget allocation for Health, Nutrition and Population Control as well as that of the Social Security, Social Services and Welfare were both instead sliced.

A comparison of the 2008 Annual Budget Ordinance shows that City Hall allocated P177.3 million for Health, Nutrition and Population Control while in the 2009 Proposed Annual Budget Ordinance the allocation for Health, Nutrition and Population Control was trimmed to P168.2 instead or a decrease of P9.1 million.

Also, the 2008 Annual Budget Ordinance shows that Social Security, Social Services and Welfare was given an allocation of P196 million but on the Proposed 2009 Annual Budget Ordinance this was decreased instead to P161.9 million or a decrease of P34.1 million.

“Masulob-on kaayo kita niini. Social and health services should be top priority,” Senator Pimentel told Gold Star Daily.

But City Council Majority Floor Leader Ramon Tabor and city committee on health chairperson City Councilor Dr. Dante Pajo both defended the move to increase the debt servicing for 2009 by some three percent as compared to 2008.

Both said the 18 percent is still within the “cap limit” allowed by law for local government units.

They also assured that the increase in debt servicing will not in any way affect the delivery of health and social services.

Tabor said the decrease in the health budget can be attributed to how City Hall has already allocated amounts for infrastructure and capital outlay related to the delivery of health services in 2008 and need not do so for the next year.

He added that it is also possible that the budget for infrastructures and capital outlay such as building hospitals are now placed under a separate budget item account.

Pajo for his part said delivery of public service in terms of health and social services will still be implemented hand-in-hand with both First District Cong. Rolando Uy and Second District Cong. Rufus Rodriguez.

“We also have donors from foreign countries,” he said.

But opposition leader Gusa barangay chairman Enrico Salcedo is convinced that the increase in debt servicing will affect the delivery of health and social services to city residents.

He said the increase in the annual budget by over P100 million should have at the very least also increased the budget allocations for that of Health, Nutrition and Population Control and the budget for Social Security, Social Services and Welfare instead of decreasing both by a total of P43.2 million.

“Mapihig gyud ang atong katawhan niini (It is our city residents who will be the bottomline losers here),” he said.

He added that it would have been good if the debt servicing was increased because of additional debts incurred to upgrade the city’s health and social services instead of allocating it to buy back the contracts for the Build-Operate-Transfer (BOT) contracts for Cogon and Carmen public markets and/or build legislative building.

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Written by admin · Filed Under Cagayan de Oro