15 November 2005
Dagupan is financially stable, Baraan assures
By SUNSHINE D. ROBLES
“THE city is financially stable and we have a lot of cash in the banks.”
With this statement, City Administrator Rafael Baraan sought to dispel speculations that the city is in the grip of a budget deficit, a month a half before the end of the year..
“These speculations are products of ignorance, because they (critics) don’t understand the intricacies of city government operations,” Baraan declared.
Baraan said that the P350 million budget for 2005 was a “very optimistic, not conservative projection.”
He noted that a projection may or may not be realized, depending on internal and external factors, such as the world economy, political crisis and especially the successive oil price hikes that may favorably or adversely influence what actually happens to the city’s financial operations.
“We have a shortfall in projected revenues, but not a budget deficit,” Baraan added.
Baraan noted that the speculations may have been triggered by a drastic move of the city to limit its expense to the most important and basic activities and operational needs.
“We imposed certain measures such as limiting the purchase of office supplies to the most essential, so that we don’t spend more than what we earn,” Baraan said.
A budget official explained that a deficit will only happen when a corporation spends beyond its total revenues by yearend.
The city administrator explained further that under the circumstances, the city has no choice but to impose corrective and remedial measures in order to prevent the city from incurring a budget deficit.
He emphasized that it’s not wrong to experience a shortfall especially when there are strong external factors affecting the life and economy of the city.
What is wrong, he said, is if we realize that our projection are not going to happen, and still fail to act properly. “Then, we would face the unwanted prospect of a budget deficit,” Baraan added.
The city administrator also clarified that the emergency workers of Dagupan have been receiving their salaries. Since the EWs were not included in the budget however, they are paid out of the savings from personal services realized from unfilled positions of the city government.
He said that the number of plantilla positions will be trimmed down, and efficient emergency workers who perform better than permanent employees will have the chance to occupy permanent positions, under the city’s reorganization program.
The sangguniang panlungsod, he said, also passed a resolution to include the legislative body’s staff in the city’s reorganization program. This is intended to professionalize the ranks of the SP, and to minimize the old practice of political accommodations.
“THE city is financially stable and we have a lot of cash in the banks.”
With this statement, City Administrator Rafael Baraan sought to dispel speculations that the city is in the grip of a budget deficit, a month a half before the end of the year..
“These speculations are products of ignorance, because they (critics) don’t understand the intricacies of city government operations,” Baraan declared.
Baraan said that the P350 million budget for 2005 was a “very optimistic, not conservative projection.”
He noted that a projection may or may not be realized, depending on internal and external factors, such as the world economy, political crisis and especially the successive oil price hikes that may favorably or adversely influence what actually happens to the city’s financial operations.
“We have a shortfall in projected revenues, but not a budget deficit,” Baraan added.
Baraan noted that the speculations may have been triggered by a drastic move of the city to limit its expense to the most important and basic activities and operational needs.
“We imposed certain measures such as limiting the purchase of office supplies to the most essential, so that we don’t spend more than what we earn,” Baraan said.
A budget official explained that a deficit will only happen when a corporation spends beyond its total revenues by yearend.
The city administrator explained further that under the circumstances, the city has no choice but to impose corrective and remedial measures in order to prevent the city from incurring a budget deficit.
He emphasized that it’s not wrong to experience a shortfall especially when there are strong external factors affecting the life and economy of the city.
What is wrong, he said, is if we realize that our projection are not going to happen, and still fail to act properly. “Then, we would face the unwanted prospect of a budget deficit,” Baraan added.
The city administrator also clarified that the emergency workers of Dagupan have been receiving their salaries. Since the EWs were not included in the budget however, they are paid out of the savings from personal services realized from unfilled positions of the city government.
He said that the number of plantilla positions will be trimmed down, and efficient emergency workers who perform better than permanent employees will have the chance to occupy permanent positions, under the city’s reorganization program.
The sangguniang panlungsod, he said, also passed a resolution to include the legislative body’s staff in the city’s reorganization program. This is intended to professionalize the ranks of the SP, and to minimize the old practice of political accommodations.
