THE Department of Budget and Management (DBM) will suspend the 24-hour waiting period for certain government payments in December to help agencies settle outstanding obligations before yearend.
Circular Letter No. 2026-14, dated Oct. 26 and signed by DBM Acting Secretary Kim Robert C. de Leon, covers the encashment of Modified Disbursement System (MDS) checks and payments through Advice to Debit Account (ADA).
“The 24-hour waiting period for the encashment of MDS checks as well as the crediting of creditors/payees’ bank accounts specified in the List of Due and Demandable Accounts Payable-ADA is hereby lifted/suspended for the whole month of December 2026,” the circular said.
The move aims to prevent unpaid obligations from spilling over into 2027 and putting pressure on next year’s cash disbursement program.
Agencies are encouraged to settle their due and demandable obligations “as soon as possible,” by issuing checks or paying through ADA no later than Dec. 22.
“However, they may still issue MDS checks or pay through ADA up to the last working day of the year,” the circular said.
The circular will be in effect from Dec. 1 until the last working day of the same year. — Justine Irish D. Tabile