The Ministry of Finance has instructed all central ministries, departments, and related organisations to stop using public money for gifts during Diwali or other festivals.

The directive, issued on September 19, 2025, is part of the Centre’s wider push to tighten fiscal discipline and curb non-essential expenditure.

An Office Memorandum released by the Department of Expenditure confirmed that the ban is effective immediately. It noted that similar guidelines had been issued in the past and said this order reinforces the government’s ongoing commitment to ensure responsible use of taxpayer funds.

“The Ministry of Finance, Department of Expenditure has from time to time issued guidelines aimed at strengthening fiscal discipline and avoiding avoidable expenses. In continuation of this effort, it has now been decided that no money shall be spent on gifts or related items for Diwali or other festivals by any ministry, department, or other organ of the Government of India,” the memorandum stated.

The order, cleared by the Secretary (Expenditure) and signed by Joint Secretary P.K. Singh, has been circulated to all secretaries and financial advisors of ministries and departments, as well as to the Department of Public Enterprises and the Department of Financial Services. These agencies have been asked to ensure that public sector undertakings, state-owned banks, and financial institutions comply with the directive.

By prohibiting such spending, the Finance Ministry is seeking to eliminate unnecessary costs and redirect resources to priority needs. The move also signals an end to the long-standing custom in many government offices of distributing festival gifts, a practice often criticised as wasteful.

Officials say the decision underscores the government’s larger message — that public money should be used judiciously and only for essential purposes.