Manila: The Iloilo City Council has approved Supplemental Budget No. 1 amounting to PHP605.3 million, with the majority of the funds earmarked for infrastructure development and salary adjustments for regular employees.

According to Philippines News Agency, Iloilo City Budget Officer Viminale Capulso stated in a follow-up interview that the larger portion of the budget, totaling approximately PHP390.568 million, is allocated for infrastructure projects. Priority projects include the Iloilo City Action and Resilience Center in Megaworld, a multipurpose building, the repair and rehabilitation of the Ker Building, a mental wellness center, medical and general services warehouses, and the Arevalo Mega Health Center.

In addition to infrastructure, over PHP20.15 million has been set aside for the second tranche of salary increases for regular or plantilla employees, effective from August this year. Capulso mentioned that the supplemental budget will be funded through savings and a budget surplus of more than PHP577.33 million from fiscal year 2024. This surplus marks the first time in four years that the city achieved a surplus exceeding PHP300 million.

The increased valuation of real property and the strong compliance of residents in paying their real property taxes were credited for the city’s improved financial performance. “We are thankful to the people for paying their real property tax diligently. At least the city government has many sources. Taxes are the lifeblood of our government. If we have a bigger collection, we can fund more programs and projects,” Capulso added.