Don't spend on festive gifts, finance ministry tells ministries, PSUs

NEW DELHI: The department of expenditure in finance ministry has asked all Union ministries and departments, including central public sector enterprises and public sector banks and financial institutions, to desist from incurring any expenditure on gifts and related items for Diwali or any other festival. The move is aimed at instilling fiscal discipline and avoiding any wasteful use of public resources.

The ministry 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 govt of India," an office memorandum issued by the department on Sept 19 stated.

Communicating that the decision shall take immediate effect, the office memorandum - copied to the cabinet secretary and financial advisers of all central ministries/departments - specifically asked the secretary, department of public enterprises, to reiterate the 'no-festive-gifts' policy to all the central public sector enterprises. Similarly, the secretary, department of financial services, was requested to reiterate the same to all public sector banks and financial institutions.