The Department of Expenditure under the Ministry of Finance has directed all Union ministries, departments, Central public sector enterprises (CPSEs), public sector banks (PSBs) and financial institutions to refrain from spending on gifts and related items during Diwali or any other festival.
The directive, issued through an office memorandum on September 19, 2025, is part of the Centre's ongoing efforts to enforce fiscal discipline and ensure prudent use of public funds.
No-Festive-Gifts Policy Extended Across Government
According to the circular, no expenditure shall be incurred on gifts or similar items for festivals. The communication has been shared with the Cabinet Secretary and financial advisors across ministries and departments.
The Department of Expenditure has specifically asked the Department of Public Enterprises to reiterate the policy to all CPSEs. Similarly, the Department of Financial Services has been instructed to communicate the directive to all PSBs and financial institutions.
Aim: Prudent Use of Public Resources
The Finance Ministry noted that such measures are not new but are part of a series of steps taken periodically to curb non-essential spending by government bodies. By banning festival-related expenditure, the ministry seeks to avoid wasteful spending and channel public resources towards priority areas.
Immediate Implementation
The memorandum makes it clear that the order takes immediate effect, leaving no room for exceptions in the current festive season.
This move aligns with the government's broader agenda of fiscal prudence and accountability, especially at a time when expenditure priorities are focused on infrastructure, welfare programs, and economic growth.
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