'Don't spend on gifts for Diwali, other festivals': Finance Ministry tells Govt departments, PSUs in fresh directive
In a fresh directive, the Finance Ministry has mandated that all government departments and PSUs refrain from spending on gifts for Diwali and other festivals. This initiative aims to promote prudent use of public resources and reduce non-essential expenditures.
Prime Minister Narendra Modi-led Union government has instructed all Ministries, Departments and other bodies of the Government of India to desist from incurring any expenditure on gifts ahead of Diwali and other upcoming festivals.
The instruction is part of a continuing effort "aimed at promoting fiscal discipline and curbing non-essential expenditure" the government said even as it has been encouraging people to celebrate the ‘GST bachat utsav’ after the cut in rates of the Goods and Services Tax.
"…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," reads the 19 September order issued by Department of Expenditure under the Ministry of Finance.
The instructions are in line with repeated government missives in recent years aimed at tightening non-essential official spending. The fresh instruction signed by PK Singh, Joint Secretary (Government of India) and issued with approval of Secretary (Expenditure) come into effect immediately.
The Finance Ministry lays down expenditure management or austerity measures from time to time. The Union government had last issued such instructions in September 2020 when it had instructed all government departments and Central Public Sector Enterprises (CPSEs) to stop the printing and distribution of calendars, diaries, festive greeting cards, and coffee table books in a bid to reduce government expenditure during the COVID-19 pandemic when the pandemic triggered fiscal stress.
The directive was subsequently relaxed in December 2022, when printing calendars was allowed again.
Earlier letter to CPSEs
Earlier, the Finance Ministry asked chief executives of all central public sector enterprises (CPSEs) to desist from purchasing gifts in festival season.
“It has been noticed that there is a prevailing practice of incurring expenditure on gifts on the occasion of Diwali and other festivals… In the interest of economy and judicious utilisation of public resources, it is imperative that such expenditure is discontinued,” the Department of Public Enterprises (DPE) in the Finance Ministry said in its letter to CPSEs’ top brass as reported by Business Standard last week.
(With agency inputs)