No Money Should be Spent on Diwali Gifts, Finance Ministry issues order to Govt Offices

The Ministry of Finance has issued instructions to stop unnecessary spending by government offices. The Department of Expenditure has announced that no money will be spent on gifts or related items for Diwali and other festivals.

The order clearly states that all Ministries, Departments, and other government bodies must follow this rule. This decision has been taken to ensure discipline in spending and proper use of public funds.

The instructions have been approved by the Secretary (Expenditure) and will be effective immediately.

The circular has also been shared with the Cabinet Secretary, all Financial Advisors of Ministries and Departments, the Department of Public Enterprises, and the Department of Financial Services. Public Sector Banks, Financial Institutions, and CPSEs have also been asked to follow the same.

Earlier, in an official letter dated September 17, 2025, Economic Advisor Dr. Sumantra Pal stated that several CPSEs have been incurring such expenses. The government stated that, in the interest of economy and proper use of public resources, this expenditure must be discontinued.

Why it may be right ✅

1. Saves public money – Government funds come from taxpayers. Using them for festival gifts is not essential.
2. Promotes fiscal discipline – It helps reduce wasteful or symbolic spending and sets an example of responsible financial management.
3. Fairness – Public money should ideally be spent on development, welfare schemes, or essential services, not gifts.
4. Transparency – Prevents misuse of funds under the excuse of “festive expenditure.”

Why some may find it negative ❌

1. Employee morale – Small festival gifts from departments sometimes boost the motivation of staff.
2. Tradition – For years, festival gifts have been seen as a gesture of goodwill in government offices. Stopping it may feel harsh to some employees.
3. Minor cost compared to big projects – The actual amount spent on gifts is small compared to larger expenditures, so some may argue it’s symbolic rather than impactful.

Diwali is the biggest festival in India, and across the country companies celebrate it with their employees by offering gifts and bonuses. In fact, many private companies have gone as far as gifting cars, flats, and other high-value items to their staff. In comparison, PSUs only provide simple festive tokens like sweets or gift hampers worth around ₹1,000.

While financial prudence is important, completely removing even these small traditions may affect the festive spirit of PSU employees, especially when they already work under high pressure and limited resources. The balance between fiscal discipline and employee satisfaction is what the government needs to carefully consider.

Diwali Gifts by Banks

PSU Bank also provide Diwali gifts to their employees. Last year, banks distributed Diwali gifts worth the amounts mentioned below.

Bank	Diwali Gift (Rs.)
SBI	2500
Bank of India	1500
Bank of Baroda	2000
Indian Bank	–
PNB	2000
Punjab & Sind Bank	–
Canara Bank	2500
UCO Bank	1000
Indian Overseas Bank	2500
Union Bank of India	1750
Central Bank of India	500
Bank of Maharashtra	1000