Budget Circular No. 2026-1

ANNEX D Ms. B is a rank-and-file employee of a state university. She is not a member of the Samahan ng mga Manggawa (SMM), which is the sole and exclusive negotiating agent of the agency. The management approved the EOMCC's recommendation to grant the CNA Incentive in the amount of P20,000 per qualified employee. Despite not being a member of the SMM, Ms. B may receive the CNA Incentive upon payment of the corresponding agency fee to the negotiating agent, provided further that she meets the eligibility requirements under the agency's internal guidelines for the purpose. Mr. C is a contract of service (COS) worker in a national government agency. Mr. C is not entitled to the FY 2026 CNA Incentive as workers engaged under a COS or job order arrangement are not covered by the subject Circular. Ms. D was promoted to a third-level (managerial) position in a government-owned or -controlled corporation on April 1, 2026. Prior to her promotion, she served as the head of the Planning Division in the same agency. Ms. D remains eligible to the grant of the CNA Incentive as the same may be provided to both management and rank-and-file employees, subject to compliance with applicable requirements and conditions as prescribed under the agency's internal guidelines on the matter. Pursuant to NBC No. 602, agencies shall determine and compute the savings equivalent to the prescribed 20% cost reduction on MOOE items based on their Financial Accountability Reports (FARs) as of March 31, 2026. Assuming that Agency E has total unobligated allotments amounting to P10,000,000.00 as of the end of the first quarter, the required 20% cost reduction on MOOE items equivalent to P2,000,000.00 shall be declared as savings. Agency E offered total savings amounting to P2,000,000.00, consisting of P1,250,000.00 from allowable MOOE [(a) to (e) of item 4.3.1 of this Circular] and P750,000.00 from other MOOE items and CO, as shown below: Particulars Amount Unobligated Allotment as of March 31, 2026 P10,000,000.00 Prescribed 20% cost reduction per NBC 602 2,000,000.00 Actual Offered Savings 2,000,000.00 Allowable MODE 1,250,000.00 Traveling Expenses 300 000.00 Training and Scholarship Expenses 200,000.00 Supplies and Materials Expenses 250 000.00 Representation Expenses 180,000.00 Utility Expenses 320,000.00 Page 20 of 21