Budget Circular No. 2026-1

(f) Subscription Expenses. Except for Constitutional Offices, the use of the foregoing MOOE items as funding sources for the payment of the CNA Incentive shall be net of the actual savings offered by the agency in compliance with the cost reduction and economy measures under National Budget Circular (NBC) No. 60213, as applicable. 4.3.2 Only agencies that have offered at least the applicable minimum cost-reduction may use the available MOOE balances to fund the CNA Incentive. For this purpose, compliance with the minimum cost-reduction requirement shall be considered met once the required 20% savings have been achieved, regardless of the source from which savings are generated. Further, once the selected MOOE object of expenditure under a specific P/A/P, as identified in items (a) to (f) herein, is utilized as source for the CNA Incentive, the same object of expenditure shall no longer be subject to any modification and/or augmentation for the remainder of the validity of appropriations. 4.3.3 The following shall, in no case, be used as fund sources of the CNA Incentive: Balances of allotment for P/A/Ps which were discontinued with finality or abandoned; and Released allotments intended for acquisition of goods and services to be distributed/delivered to, or to be used by agency clients. 4.3.4 Items under Personnel Services (PS), all other MOOE, and/or Capital Outlay shall not be used to increase allowable MOOE items as a fund source for the FY 2026 CNA Incentive. 4.3.5 For GOCCs The CNA Incentive shall be sourced solely from the total MOOE level under their respective DBM-approved COBs for FY 2026, provided that the following conditions are complied with: (a) Actual operating income for the period January 1 to September 30, 2026 shall, at least, meet the targeted operating income in the approved COB for the same period. 4(1 13 Adoption of Economy Measures in View of the Declaration of a State of National Energy Emergency Under Executive Order (EO) No. 110, s. 2026 Page 7 of 21