DELAY AFFECTS HEALTHCARE, SERVICES: Albay’s P4.1B budget stalled awaits previous-year balance

By Rhaydz Barcia

LEGAZPI CITY --- Political differences within the Sangguniang Panlalawigan have stalled the approval of Albay’s proposed P4.1-billion annual budget, as opposition board members repeatedly deferred deliberations over the absence of the province’s certificate of beginning balance (CBB) or surplus figure for fiscal year 2025.

The delay stemmed from the insistence of Board Member Melissa Abadeza-Armedilla, chairperson of the Committee on Budget and Appropriations, that Governor Noel Rosal submit the certificate of beginning balance (CBB) before the provincial board could approve the 2026 budget.

Abadeza-Armedilla, a lawyer by profession, demanded that the governor submit the document as early as last year, arguing that it was necessary for the board to properly decide on the proposed budget.

Following the provincial board’s failure to pass the 2026 budget, Rosal wrote Vice Governor Farida Co and Abadeza-Armedilla, warning that the prolonged delay would adversely affect the delivery of vital government services, particularly the province’s healthcare programs. Abadeza-Armedilla is an ally of the Ako Bicol Party-list.

Co is the younger sister of resigned Ako Bicol Party-list Representative Elizaldy S. Co. Rosal urged the provincial board, led by Vice Governor Co, to immediately approve the budget to prevent disruptions in essential services, especially in public health.

In his letter to the Sangguniang Panlalawigan, Rosal said the demand for the beginning balance was not supported by law.

“First, this surplus is not part of the budgetary requirements under Section 324 of the Local Government Code. Second, the surplus from the previous year does not form part of, and is in fact not included in, the computation of the budget for the ensuing year. This is the clear import of Section 322 of the Local Government Code,” Rosal said.

The governor further explained that the beginning balance or surplus figure for FY 2025 was not yet available because the province’s books of accounts had not been fully closed.

“The submission of documents supporting the computation of the beginning balance or surplus figure for FY 2025 was not yet possible at the time of your request—and even up to now—considering that the books of accounts have not yet been fully closed,” Rosal said.

He cited Commission on Audit (COA) Circular No. 2010-001, which allows local government units until February 14 of each year to close their books of accounts and submit year-end financial statements to COA.

Rosal also warned of the serious implications of a re-enacted budget.

“Generally, a re-enacted budget freezes the introduction of new programs and projects, the hiring and promotion of personnel, and greatly restricts access to unprogrammed funds,” he said.

“In the case of the Provincial Government of Albay, a re-enacted budget would halt the substantial increase in funding for our local hospitals. Ensuring greater access to affordable healthcare for Albayanos would therefore be severely affected,” he added.

On Monday, Abadeza-Armedilla—who has faced online criticism and accusations of politicking—handed over the sponsorship of the 2026 budget to Board Member John Gio Ong Bongao, also a lawyer and representative of Albay’s first district.

In a Facebook post, Abadeza-Armedilla said she decided to relinquish the task in order to give another member of the committee the opportunity to sponsor the budget’s approval.

She said her committee was merely waiting for the submission of the requested document to allow the Sanggunian to decide “properly and righteously” on the proposed budget.

“Instead of respecting that, malicious intentions were imputed on my part—that I simply wanted to delay the approval,” she said. “I gave another member of the committee, Board Member Gio Bongao, the opportunity to immediately sponsor the approval of the annual budget for 2026,” she added.

However, Abadeza-Armedilla said that despite her decision, the budget was again laid on the table, with some members still opting to wait for the submission of the requested document.

Bongao, for his part, said there is no provision in the Local Government Code that bars the approval of an annual budget in the absence of a certificate of beginning balance.

He explained that the beginning balance for 2025 is not yet available and will be submitted to the Sangguniang Panlalawigan in due time, with any surplus to be properly reflected in the province’s funds.

As a member of the Committee on Budget and Appropriations, Bongao said he would take full responsibility for sponsoring the approval of the 2026 budget and would not delegate the task to other board members.

He underscored that the Local Government Code serves as the “bible” of LGU operations and explained that a provincial budget consists of two components: the estimated income, already presented in the executive budget, and the total appropriations covering operating expenditures and capital outlays.

“These two components must be balanced, and this has already been affirmed by the executive department,” Bongao said.

Lawyer Edwin B. Bellen, retired Deputy Secretary for Legislation of the Philippine Senate, said Sections 318 to 323 of the Local Government Code (Republic Act 7160) do not require the submission of a beginning balance or cash-in-hand report for the passage of an annual appropriation ordinance.

“The law does not require it for the approval of an annual budget for a city, municipality, or province,” Bellen said. “A beginning balance can only be determined after the close of the preceding fiscal year and completion of accounting adjustments. Requiring it as a condition for budget approval constitutes an extra-statutory requirement,” he added.

Bellen further noted that if no 2026 budget is duly enacted, the 2025 budget will be automatically re-enacted, with or without a beginning balance report.

“Albay will be placed under a re-enacted budget if the Sangguniang Panlalawigan refuses or fails to approve the annual budget for the current year,” he said.