Government Orders CPSEs to Stop Festival Gift Expenditure – Circular Dated 17 September 2025

The Government of India, through the Ministry of Finance (Department of Public Enterprises), has issued a directive on 17 September 2025 instructing all Central Public Sector Enterprises (CPSEs) to stop incurring expenditure on gifts during Diwali and other festivals.

Key Highlights of the Circular

• Issued by: Dr. Sumantra Pal, IES, Economic Advisor
• Date: 17 September 2025
• Department: Ministry of Finance, Department of Public Enterprises (DPE)
• Applicable to: All Central Public Sector Enterprises (CPSEs)
• Instruction: Discontinue gift expenditure during festivals such as Diwali

Reason Behind the Directive

The government observed a prevailing practice of CPSEs spending significant amounts on gifts during Diwali and other festivals. To promote financial discipline and responsible use of taxpayer money, this practice has now been ordered to be stopped.

What Does This Mean for CPSEs?

• No festival gifts: CPSEs are strictly instructed not to spend on gifts for Diwali, Holi, or any other festival.
• Compliance mandatory: Administrative Ministries and Departments are requested to ensure strict compliance.
• Focus on economy: Resources should be used only for essential and productive purposes.

Official Statement

“In the interest of economy and judicious utilization of public resources, it is imperative that such expenditure be discontinued. Accordingly, all the CPSEs are requested not to incur expenditure on gifts, etc. for any festival.”

Conclusion

This decision marks an important step by the Government of India to ensure transparency, economy, and discipline in the financial functioning of CPSEs. Going forward, CPSEs will be expected to comply with these strict instructions, avoiding unnecessary expenditures during festive seasons.

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