The Ministry of Finance has issued a comprehensive directive prohibiting all central government ministries, departments, and associated organizations from using public funds for festival gifts, including during Diwali celebrations.
The order, announced September 19, 2025, represents the government’s continued emphasis on fiscal discipline and elimination of non-essential expenditures. The Department of Expenditure’s Office Memorandum takes immediate effect across all government entities.
Ministry of Finance bans Diwali gifts
The restriction extends beyond central ministries to include all government organs. The circular emphasizes this decision continues previous efforts to ensure responsible public resource management.
“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 notice stated.
Secretary (Expenditure) approved the order, with Joint Secretary P.K. Singh signing the official communication. Distribution includes all ministry secretaries, financial advisors, the Department of Public Enterprises, and the Department of Financial Services.
Extended Implementation
The directive requires these departments to communicate the restrictions to central public sector enterprises, public sector banks, and financial institutions under their purview. This comprehensive approach ensures uniform implementation across the government’s extensive organizational structure.
The memorandum explicitly states: “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.”
Policy Rationale
The decision reflects the government’s priority on prudent public money utilization, particularly during periods of heightened focus on fiscal management and resource allocation. By eliminating festival-related spending, the Finance Ministry aims to redirect resources toward essential government functions and services.
This directive effectively ends the traditional practice in numerous departments of distributing festival gifts, which had been increasingly viewed as unnecessary expenditure. The policy change aligns with broader government initiatives promoting fiscal responsibility and optimal resource utilization across public sector operations.
The timing before Diwali ensures immediate implementation during one of India’s major festival seasons.
