Finance Ministry Bans Diwali Gifts Spending Across Government Departments
Finance Ministry Bans Use of Public Funds for Diwali, Festival Gifts
The Ministry of Finance has prohibited all central government ministries, departments, and affiliated organisations from using public money to purchase gifts for Diwali or any other festival.
The directive, issued on September 19, 2025, by the Department of Expenditure, takes immediate effect and reiterates earlier guidelines aimed at fiscal discipline and cutting non-essential expenses.
“The Ministry of Finance, Department of Expenditure has been issuing instructions from time to time to promote fiscal discipline and curb avoidable expenditure. In continuation of these efforts, 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 government organisations,” the circular stated.
The order, signed by Joint Secretary P.K. Singh and approved by the Secretary (Expenditure), has been circulated to all secretaries and financial advisors. It has also been sent to the Department of Public Enterprises and the Department of Financial Services, directing them to ensure compliance across CPSEs, public sector banks, and financial institutions.
The move marks the government’s firm stance on prioritising prudent use of public resources, bringing an end to the long-standing practice of distributing festival gifts within government bodies.
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