The DBM, through Circular Letter No. 2026-15 dated November 9, 2026, reminded all government agencies and LGUs to use government funds judiciously and prudently for Christmas parties, anniversary celebrations, and other year-end activities. It also covers raffle items, gift or grocery baskets, shirts, jackets, and giveaways bought for these events. The circular does not cancel year-end gatherings. It asks agencies to keep them simple, modest, and inclusive.
What is DBM Circular Letter No. 2026-15?
It is a DBM reminder signed by Secretary Kim Robert C. De Leon on the judicious and prudent use of government funds for FY 2026 year-end gatherings, celebrations, and similar events. It does not create a new rule. It restates existing laws and policies and links them to current conditions.
Why is DBM issuing this reminder now?
The circular says strict enforcement of these policies is “amplified” by the national energy situation and the El Niño phenomenon:
- EO No. 110 (March 24, 2026) declared a state of national energy emergency, in force for one year unless extended or lifted earlier. The UPLIFT package (Unified Package for Livelihood, Industry, Food, and Transport) is the government’s response framework.
- NBC Nos. 602 and 603 gave economy measures and savings guidelines. NBC 602 directed covered entities to realize at least 20% savings from non-essential operating expenses such as travel, training, meetings, office supplies, and utilities.
- PAGASA announced on November 4, 2026 that a Very Strong El Niño is present, expected to persist until the first half of 2027, with a possible peak by the end of 2026.
Who must comply?
The circular is addressed to:
- Departments, agencies, and Other Executive Offices (OEOs)
- GOCCs and GFIs
- State Universities and Colleges (SUCs)
- Commissions/Offices under the Constitutional Fiscal Autonomy Group (CFAG)
- Local Government Units (LGUs)
- All others concerned
The Head of Agency is responsible for ensuring strict implementation of the rules on prudent use of funds, including this circular.
What activities are covered?
The circular defines “other similar activities/events” as:
- Christmas parties
- Anniversary celebrations
- Thanksgiving programs
- Recognition events
- Year-end assessment
- Other similar functions held in connection with the year-end
The reminder also covers purchases during these events:
- Raffle items
- Gift or grocery baskets
- Shirts and jackets
- Other tokens and goods
- Giveaways, and items for distribution to officials and employees (inside or outside the organization) and to agency clients/customers
Exception (footnote): Items given to employees under the agency’s PRAISE (Program on Awards and Incentives for Service Excellence) mechanism and the like are not covered, subject to civil service and budgeting laws, rules, and regulations.
What does DBM encourage instead?
Agencies are encouraged to hold sensible, mindful, and meaningful celebrations that build camaraderie and boost morale. These should be:
- Simple and modest in scale, not costly or elaborate
- Inclusive, and respectful of the diverse beliefs, traditions, and economic circumstances of all employees
- An expression of compassion, empathy, and solidarity with fellow Filipinos
What spending does COA already consider excessive or extravagant?
The circular cites COA Circular No. 2012-003:
| COA Annex | What it covers | Relevant item |
|---|---|---|
| Annex D (Excessive expenditures) | Expenditures to be prevented | “Excessive expenditures in the celebration of Christmas, anniversary, and other special occasions” |
| Annex E (Extravagant expenditures) | Expenditures to be avoided | Purchase of wines, liquors, cigars, and cigarettes, except at state functions and government-sponsored international conferences and conventions |
| Annex E (Extravagant expenditures) | Expenditures to be avoided | Rent of expensive halls or rooms in luxury hotels or restaurants for meetings, seminars, and official functions, except for government-sponsored international conventions and meetings |
Legal Basis
- Section 1, Article XI, 1987 Constitution: public office is a public trust, and public servants must lead modest lives
- EO No. 292 (Administrative Code of 1987): government resources must be managed and expended in accordance with law and safeguarded against wastage
- RA No. 6713 (Code of Conduct and Ethical Standards): Section 4(A)(a) on avoiding wastage of public funds, and Section 4(h) on modest living without extravagant or ostentatious display
- COA Circular No. 2012-003 (October 29, 2012): Annexes D and E
- OP Memorandum Circular No. 110 (December 15, 2025): austerity in Christmas celebrations
- OP Memorandum Circular No. 114 (March 6, 2026): energy conservation protocols
- EO No. 110, s. 2026: state of national energy emergency and UPLIFT
- DBM NBC Nos. 602 and 603: economy measures and savings
- DBM Circular Letter No. 2026-15 (November 9, 2026)
Frequently Asked Questions
Is the Christmas party in government offices banned?
No. The circular does not ban gatherings. It reminds agencies to spend prudently and encourages simple, modest, inclusive celebrations.
Can we still buy raffle prizes and gift baskets using government funds?
The circular specifically names these items as covered by the reminder on prudent use of funds. Items given under the agency’s PRAISE mechanism are the stated exception, subject to civil service and budgeting rules. Check with your agency’s budget and accounting units.
Does this apply to LGUs?
Yes. LGUs are among the addressees.
Who is responsible for compliance?
The Head of Agency, under Section 51, Chapter 9, Subtitle B, Title I, Book V of EO 292.
Can agencies buy wines or liquor for the party?
COA Circular 2012-003, Annex E, lists the purchase of wines, liquors, cigars, and cigarettes among extravagant expenditures to be avoided, except at state functions and government-sponsored international conferences and conventions.
Can we rent a luxury hotel or restaurant function room?
Annex E lists renting expensive halls or rooms in luxury hotels or restaurants for meetings, seminars, and official functions among expenditures to be avoided, except for government-sponsored international conventions and meetings.
Summary / Key Takeaways
- CL 2026-15 (November 9, 2026) reminds all agencies and LGUs to spend prudently on FY 2026 year-end activities.
- It covers parties, anniversaries, thanksgiving programs, recognition events, and year-end assessments, plus raffle items, gift or grocery baskets, shirts, jackets, and giveaways.
- It cites the energy emergency (EO 110), NBC 602’s 20% savings directive, and the Very Strong El Niño as reasons for extra prudence.
- COA Annexes D and E flag excessive Christmas spending, alcohol, and luxury venues.
- PRAISE awards are the stated exception to the giveaway reminder.
- Simple, inclusive, meaningful celebrations are encouraged.
- Agency heads are responsible for strict compliance.
Related Posts
- Year-End Bonus and Cash Gift 2026: Who Gets It and When
- COA Rules on Excessive and Extravagant Expenditures
- ₱30,000.00 CNA Incentives: Who Gets it and When Paid?
Disclaimer: This article is based on DBM Circular Letter No. 2026-15 (November 9, 2026), Section 1, Article XI of the 1987 Constitution, EO No. 292, RA No. 6713, COA Circular No. 2012-003, OP MC Nos. 110 and 114, EO No. 110 (s. 2026), and DBM NBC Nos. 602 and 603. It is for educational purposes only and is not for use in any government transaction.
