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FinMin’s directive prohibits the use of public funds for Diwali or other festive occasions as part of efforts to strengthen fiscal discipline
Gifts (Representational Image)
The Centre has barred ministries, departments, and central public sector enterprises (CPSEs) from spending on festival gifts, The Economic Times reported. The Finance Ministry’s latest directive prohibits the use of public funds for Diwali or other festive occasions as part of efforts to strengthen fiscal discipline and cut non-essential expenditure.
The order, issued through an office memorandum by the Department of Expenditure, makes it clear that no government wing may utilise funds for gifts or related items during festivals. The restriction takes effect immediately. The circular also noted that similar instructions have been issued earlier, and the move is a continuation of the government’s broader push for prudent and judicious use of public money.
“The Ministry of Finance, Department of Expenditure, has been issuing instructions from time to time aimed at promoting fiscal discipline and curbing non-essential expenditure. In continuation of these efforts and in the interest of prudent 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 said.
The directive was approved by the Secretary (Expenditure) and signed by P.K. Singh, Joint Secretary to the Government of India. It has been circulated to all secretaries and financial advisors of ministries and departments, as well as to the Departments of Public Enterprises and Financial Services. These bodies have been instructed to ensure that the guidelines are reiterated to all CPSEs, public sector banks, and financial institutions.
I welcome @Finminindia’s directive to Union Government Departments & PSUs not to splurge on festive gifts. For too long, politicians & bureaucrats have been the biggest beneficiaries of such spending at taxpayers’ expense.I urge state governments to follow suit.
– Milind Deora | Milind Devra (@milinddeora) September 23, 2025
Shiv Sena MP Milind Deora welcomed the move and tweeted on X (Formerly Twitter), “I welcome @FinMinIndia’s directive to Union Government Departments & PSUs not to splurge on festive gifts. For too long, politicians & bureaucrats have been the biggest beneficiaries of such spending at taxpayers’ expense.I urge state governments to follow suit.”
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 23, 2025, 10:15 is
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