No More Festival Gifts from Government Departments: Ministry of Finance Orders Immediate Ban
Centre Bans Festival Gift Expenditure By Ministries And CPSEs: In a cost-cutting move, the Department of Expenditure under the Ministry of Finance has officially banned the distribution of Diwali and other festival gifts across all central ministries and departments. Labeling such gestures as “unnecessary expenditure,” the ministry emphasized the need for equitable use of public resources. This directive, issued with the concurrence of the Secretary of Expenditure, follows an earlier advisory by Dr. Sumantra Pal, Economic Advisor to the Government of India, targeting Central Public Sector Enterprises (CPSUs) for similar festive gift-giving practices.
The advisory to CPSUs, sent on September 17, urged a complete halt to the tradition of exchanging gifts during festivals, citing the rising financial burden on government enterprises. Dr. Pal noted that such customs, though well-intentioned, lead to avoidable public spending and should be discontinued in favor of fiscal responsibility. In line with this, all CPSUs have been asked to comply with the new guidelines and ensure that no gifts are exchanged during Diwali or other festive occasions.
However, the move has sparked criticism from employee groups and labor representatives. Dr. Manjit Singh Patel, Chairman of the National Mission for Old Pension Scheme India, voiced strong opposition to the decision, calling it demoralizing for workers. “What harm is there in giving a small gift that brings encouragement and shows recognition?” he questioned. According to Patel, such tokens, though small, boost employee morale and contribute to workplace motivation—something he believes the government has overlooked in its push for austerity.
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