The Davao City Council approved on the 5th special session on Tuesday on third and final reading an ordinance granting legislative authority to the City Government’s Fiscal Year 2025 Supplemental Budget No. 3, covering the General Fund Proper and the Economic Enterprises, in the total amount of P187,324,000.
The ordinance, authored by Councilor Danny Dayanghirang, authorizes the release of funds largely earmarked for employee incentives and gratuity pay following deliberations by the Sangguniang Panlungsod Committee on Finance, Ways and Means, and Appropriations during a committee hearing held on Friday.
The supplemental budget was endorsed to the City Council on December 18, 2025 by acting Mayor Sebastian ‘Baste” Duterte, who said the proposed appropriations are essential and urgently needed to sustain the city government’s programs and projects.
After its first reading on December 19, 2025, the proposal was immediately referred to the finance committee.
The committee hearing was attended by members of the City Council or their authorized representatives, the Local Finance Committee, department heads and chiefs of offices, and representatives of concerned agencies.
Based on the committee report, a significant portion of the supplemental budget will be used for the payment of the FY 2025 Service Recognition Incentive (SRI) for government plantilla personnel, with a maximum of P20,000 per employee, in accordance with Administrative Order No. 40, series of 2025, and Budget Circular No. 2025-3 dated December 15, 2025.
The ordinance likewise provides funding for the gratuity pay of job order and contract of service workers, with a maximum of P7,000 per worker, pursuant to Administrative Order No. 39, series of 2025, and Local Budget Circular No. 2025-4 dated December 16, 2025.
Dayanghirang said of the total amount, P137,312,000 was allocated under Special Purpose Appropriations for the gratuity pay of job order and contract of service workers, lodged under the Office of the City Mayor.
Meanwhile, Dayanghirang said P4,332,000 was allotted to the city’s Economic Enterprises for the same incentives and gratuity pay and these include allocations for the operation of markets amounting to P2,993,000, slaughterhouses at P1,046,000, cemeteries at P188,000, the Davao City Recreational Center at P70,000, and Sta. Ana Port at P35,000.
The committee report also approved interfund transfers within the Economic Enterprises, including P1,046,000 from the operation of markets to the operation of slaughterhouses and P35,000 from the operation of markets to the operation of Sta. Ana Port.
The ordinance was approved pursuant to Section 458 of Republic Act No. 7160, or the Local Government Code of 1991, which mandates the Sangguniang Panlungsod to approve supplemental budgets and appropriate funds for the city’s programs, projects, and activities.
