
The Ministry of Finance has directed all Union government entities to strictly adhere to a “no festive gifts” policy, reinforcing its focus on fiscal prudence and responsible use of public money.
In a memorandum issued by the Department of Expenditure on September 19, 2025, ministries, departments, central public sector enterprises (CPSEs), public sector banks, and financial institutions were instructed to avoid any expenditure on gifts or related items for Diwali or other festivals.
The ministry emphasized that the decision aligns with its broader drive to cut non-essential spending and encourage careful financial management. “In continuation of these efforts and in the interest of judicious use of public resources, it has been decided that no expenditure shall be incurred on gifts and related items for festivals,” the circular noted.
To ensure uniform implementation, copies of the directive were also circulated to the Cabinet Secretary and the financial advisors of all central ministries and departments. The Department of Public Enterprises has been tasked with reminding all CPSEs of the rule, while the Department of Financial Services has been directed to communicate the same to public sector banks and financial institutions.
By institutionalizing a “no-gifts” culture during festive occasions, the government aims to set an example of restraint and accountability. The Finance Ministry underscored that such measures are essential to cut avoidable expenses and redirect resources towards priority development areas.