The Ministry of Finance has barred all central ministries, departments, and affiliated organisations from using public funds to purchase gifts for Diwali or any other festival, reinforcing the government’s push for fiscal discipline.
The directive, issued on September 19 by the Department of Expenditure, took immediate effect. It reiterates earlier instructions aimed at curbing non-essential expenditure and ensuring prudent use of public money.
“In continuation of efforts to promote fiscal discipline and judicious use of public resources, it has been decided that no expenditure shall be incurred on gifts and related items for Diwali and other festivals by Ministries/Departments and other organs of the Government of India,” the memorandum stated.
Approved by the Secretary (Expenditure) and signed by Joint Secretary PK Singh, the order has been circulated to all secretaries and financial advisors across ministries and departments. It has also been sent to the Department of Public Enterprises and the Department of Financial Services, with instructions to pass it on to central public sector enterprises (CPSEs), public sector banks, and financial institutions.
The circular underscores the government’s intent to avoid unnecessary festival-related expenses and redirect resources to priority areas. The move also brings an end to the long-standing tradition in several departments of distributing gifts during festivals, a practice often criticised as wasteful.
