The City Government of Naga in southern Cebu failed to collect P402.5 million of its projected income for 2025. This shortfall marks the third consecutive year the city has fallen short of its financial targets. The State auditors identified the discrepancy during a routine review of municipal finances.
The audit revealed that the city’s actual revenue amounted to P1.4 billion, while the projected income was set at P1.8025 billion. The gap between expected and actual revenue has prompted internal reviews of budgeting practices and revenue collection mechanisms. Officials have not yet released the reasons behind the shortfall, though preliminary reports suggest delays in tax collections and reduced business activity.
Naga City has faced financial challenges in recent years, including delays in infrastructure projects and increased operational costs. The city’s budget shortfall has raised concerns among local officials and residents about the sustainability of public services. The situation highlights broader issues in municipal fiscal planning and the need for improved transparency in financial reporting.
