In a move to reinforce fiscal discipline and ensure the responsible use of public funds, the Finance Ministry has directed all Central government entities to adhere to a 'no-festive-gifts' policy. This directive, issued by the Department of Expenditure, applies to all Union ministries and departments, including Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs), and financial institutions. The aim is to curb non-essential expenditure on gifts and related items during Diwali and other festivals.
The Ministry of Finance has been consistently issuing instructions to promote fiscal prudence and curb unnecessary spending. The recent office memorandum, released on September 19, 2025, reiterates that no expenditure should be incurred on festive gifts by government bodies. This decision takes effect immediately. The directive has been communicated to the Cabinet Secretary and financial advisors across all central ministries and departments. The Secretary of the Department of Public Enterprises has been specifically tasked with reinforcing this policy among all CPSEs. Similarly, the Secretary of the Department of Financial Services is to ensure that all PSBs and financial institutions comply with the 'no-festive-gifts' policy.
The 'no-festive-gifts' policy aligns with broader efforts to optimize government spending and prioritize essential services. By eliminating the practice of exchanging gifts during festivals, the government aims to set an example of financial responsibility and encourage similar practices across all sectors. This measure underscores the government's commitment to efficient resource allocation and prudent financial management. While the directive explicitly mentions Diwali, it extends to all festivals, ensuring a consistent approach throughout the year. This comprehensive approach aims to prevent any potential loopholes or discretionary spending on celebratory items.
Several organizations have already implemented similar policies. Many corporations have a "No Festive Gifts" policy that prohibits employees from soliciting or accepting gifts. This helps to avoid potential conflicts of interest and maintain ethical standards. These policies also promote a culture of transparency and accountability within the organization. By extending this practice to government entities, the Finance Ministry seeks to foster a similar culture of fiscal responsibility and ethical conduct in the public sector.
The implementation of the 'no-festive-gifts' policy is expected to have a positive impact on the government's financial resources. The savings generated from this measure can be redirected towards more critical areas such as infrastructure development, healthcare, education, and social welfare programs. This move reflects the government's commitment to prioritize public welfare and ensure that resources are utilized effectively for the benefit of all citizens.
