By Ivy Tejano
DAVAO CITY – The Department of Budget and Management has declared the City Government of Davao’s CY 2025 Supplemental Budget No. 1, amounting to P960,863,872.27, “operative in its entirety.”
Councilor Danilo Dayanghirang, chairperson of the Committee on Finance, made the announcement during the Pulong-Pulong sa Dabawenyos media forum on Tuesday afternoon at Sangguniang Panlungsod.
“We just received from DBM that the Supplemental Budget No. 1 is already declared operative,” Dayanghirang said, noting that the city’s budget measures undergo review by the DBM and the Department of Finance before effectivity.
In a letter dated October 2, 2025, DBM-11 informed the Davao City Council that its review of SB1, under Appropriation Ordinance No. 018-25, series of 2025, found that it largely complies with the Local Government Code of 1991 and its implementing rules and regulations.
“Accordingly, the said AO is declared operative in its entirety,” the DBM wrote, adding that effectiveness is subject to the posting requirement under Section 59 of R.A. 7160.
The agency also stated that its review does not authorize any appropriation items prohibited by law or inconsistent with legal provisions, and that compliance with laws and regulations remains the responsibility of the implementing local government unit.
According to the ordinance’s breakdown, the Office of the City Mayor is the largest recipient of allocations, at P708,669,295.03. Other implementing offices include the City Environment and Natural Resources Office, with a budget of P132,428,118.16, among others.
It also noted that the highest source of funds came from the reversion of current year’s appropriations totaling P480,042,280.22 (49.96% of total sources), with P454,438,928.00 of the reverted amount came from the Peace and Order and Public Safety Program and reappropriated under the same program due to changes in priorities.
The 21st Davao City Council approved SB1, worth P960 million, on third and final reading during a special session in August 2025.
Dayanghirang said Acting Mayor Sebastian Duterte instructed the council to prioritize education, consistent with his commitment to expand the city’s scholarship program.
Funds were also set aside for the Davao City Treatment and Rehabilitation Center for Drug Dependents to support ongoing rehabilitation initiatives. Both the scholarship and rehabilitation allocations were taken from the City Mayor’s Office budget.
Other portions of SB1 were distributed to various offices, including the Sangguniang Panlungsod and the Human Resources Management Office, to support organizational changes under recently passed city ordinances.
Dayanghirang said a key feature of the supplemental budget is the P153.23 million one-time gratuity pay for job order and contractual workers who served in 2024.
Under the scheme, workers with at least three but less than four months of service will receive P6,000; those with at least two but less than three months will get P5,000; while those who served for less than two months will receive P4,000.
He said the gratuity pay complies with Administrative Order No. 28, series of 2024, and Local Budget Circular No. 2024-8, noting that its release was delayed due to the late issuance of the President’s order in December 2024. To speed up the payout, Duterte certified the measure as urgent.
Dayanghirang said the benefit aims to recognize the contributions of job order and contractual workers, who do not receive 13th- and 14th-month pay, and is expected to help boost morale and performance.
