Davao City Council Approves ₱1.25B Supplemental Budget

by Rachel Morgan News Editor

The 21st Davao City Council has officially approved Supplemental Budget (SB) No. 1, authorizing an expenditure of approximately P1.25 billion. This fiscal measure represents a P290 million increase over the previous year’s supplemental budget, which stood at P960 million.

Proposed by Councilor Danilo Dayanghirang, who leads the Committee on Finance, Ways and Means, and Appropriations, the budget was endorsed by the City Mayor’s Office. Officials have characterized the items included in the funding as “very essential and urgently needed.”

Funding Sources and Allocations

The total appropriation of P1,253,541,058 is drawn from a surplus of 2025 operations totaling P811 million, along with P442 million in reversions from current and prior appropriations, and P28 million from the Economic Enterprise Fund. Key allocations include P336 million for the City Social Welfare and Development Office (CSWDO), P78 million for the City Mayor’s Office, and P41 million for the City Transport and Traffic Management Office (CTTMO).

the City Engineer’s Office is set to receive P19 million, while the City College of Davao is allocated P1.8 million. A specific provision of P34 million is earmarked to bring the city’s sanitary landfill into compliance with standards set by the Department of Environment and Natural Resources (DENR) following a mass wasting incident.

Did You Know? The supplemental budget includes a P200 million allocation to procure 20 additional bus units for the Davao City Interim Bus Service (DIBS), which currently operates with 10 units to assist commuters during peak rush hours.

Infrastructure and Transit Implications

The expansion of the DIBS fleet is expected to provide greater ease for commuters. According to Councilor Dayanghirang, the P200 million allocation for the bus units also incorporates funding for a digitalization component. As the procurement process moves toward the bidding phase, the specific technical requirements for these units and their associated digital systems will be finalized.

WATCH | Sangguniang Panlungsod 20th Davao City Council Regular Session | June 24, 2025
Expert Insight: The significant increase in this year’s supplemental budget—nearly 30% higher than the 2025 figure—suggests a strategic push to address both immediate infrastructure needs and long-term public service reliability. The allocation for the landfill highlights the high cost of post-incident remediation, while the investment in transit suggests a focus on mitigating daily urban congestion.

Frequently Asked Questions

What is the primary purpose of the P200 million allocated to the DIBS?
The funds are intended for the procurement of 20 additional bus units to expand the current fleet and to include a digitalization component for the service.

Why is the city allocating P34 million to the sanitary landfill?
The appropriation is intended to help the local government comply with standards set by the Department of Environment and Natural Resources (DENR) following a mass wasting incident that resulted in two deaths.

Where does the funding for this supplemental budget originate?
The budget is sourced from a P811 million surplus from 2025 operations, P442 million in reversions from General Fund Proper and Development Fund appropriations, and P28 million from the Economic Enterprise Fund.

How do you believe the proposed expansion of the city’s bus fleet will impact your daily commute?

You may also like

Leave a Comment