By Derco Rosal
At A Glance
- As year-end celebrations approach, local government units (LGUs), government departments, institutions, and corporations are being reminded to limit spending on raffle prizes, grocery baskets, and other giveaways.
As year-end celebrations approach, local government units (LGUs), government departments, institutions, and corporations are being reminded to limit spending on raffle prizes, grocery baskets, and other giveaways.
Department of Budget and Management (DBM) Secretary Kim Robert C. De Leon issued Circular Letter 2026-15 dated Nov. 9, explicitly reminding all national departments, LGUs, government-owned and/or -controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs), and constitutional bodies to curb spending on holiday parties.
“All government agencies and LGUs are strongly reminded to exercise judicious and prudent use of government funds in the conduct of the fiscal year (FY) 2026 year-end gatherings, celebrations, and other similar activities or events,” the circular letter read.
De Leon said the restrictions cover purchases of raffle prizes, gift and grocery baskets, shirts, jackets, and other giveaways for activities involving both employees and people outside the organization, including agency clients and customers.
“Such activities should be simple and modest in scale rather than costly or elaborate festivities, and ensure inclusivity and respect for the diverse beliefs, traditions, and economic circumstances of all government employees,” the DBM said.
The DBM cited a Commission on Audit (COA) circular that seeks to prevent excessive spending on Christmas parties, anniversaries, and other special occasions.
COA also prohibits government agencies from purchasing alcoholic beverages, cigars, and cigarettes, as well as renting expensive venues such as luxury hotels and restaurants for official functions, except during state functions and government-sponsored international events.
These spending restrictions form part of broader austerity measures across the executive branch.
Under National Budget Circular No. 602, government agencies must cut at least 20 percent of their non-essential or non-priority operating expenses under the ₱6.793-trillion 2026 national budget, including spending on travel, training, meetings, office supplies, and utilities.
Reinforced by a presidential directive, the DBM said the spending restrictions reflect government officials’ responsibility to serve the public and lead modest lives, as required under the 1987 Constitution.
“These constitutional commands of efficiency and modesty in the discharge of public office apply with particular weight to the management of public funds, especially when government resources are under strain,” the DBM said.
Under existing laws, agency heads are responsible for ensuring the proper and prudent use of public funds and enforcing rules governing government spending.
This call for fiscal prudence comes as the country braces for weather-related shocks, with the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) reporting that a very strong El Niño is expected to peak by year-end and persist through the first half of 2027.
As such, the DBM urged agencies and the public to carry out conservation and mitigation measures, including the efficient management of water resources.
These climate risks compound the country’s ongoing national energy emergency, which was declared following the escalation of the war in the Middle East that disrupted global oil supplies.
