Wishing all "Merry Christmas" and Happy New Year, he said people are free to celebrate December 25 in "whatever manner they like".
December 25, birthday of former Prime Minister Atal Behari Vajpayee and Madan Mohan Malaviya, is being observed as good governance day by the NDA government.
"National function of good governance day is being observed on December 25 and all central ministers will participate in public functions in their respective states and MPs will go to their constituencies," Naidu said.
Dismissing the controversy over the event as a "non-issue", he said, "Unfortunately some people have created issue out of a non-issue forgetting the fact such circulars were issued in the past when they were in power.