**Finance Ministry Advises Against Festival Gifts to Promote Fiscal Discipline Ahead of Diwali**

*New Delhi:* Ahead of Diwali, the Finance Ministry has issued an advisory to all financial institutions, including the Reserve Bank of India, urging them to stop wasteful expenditure such as festival gifts. This move aims to promote fiscal discipline and curb non-essential spending.

Citing an advisory from the Department of Public Enterprises (DPE), the Department of Financial Services (DFS) has directed entities under its administrative control to adhere to this guideline, sources confirmed.

The advisory emerges at a time when the government is actively trying to boost consumption and encourage public spending. Earlier this year, as part of Budget 2025-26, the government provided income tax relief targeting the middle class to stimulate consumption.

Additionally, the government has reduced the Goods and Services Tax (GST) on approximately 375 items through the next-generation GST 2.0 reforms. These reduced rates came into effect from September 22.

According to government estimates, the combined impact of the tax rate cuts and GST 2.0 reforms is expected to add around Rs 2.2 lakh crore to India’s GDP, which is approaching the USD 4 trillion mark. These measures also help mitigate the effects of a steep 50 percent tariff imposed last month by the U.S. Administration on shipments from India.

As part of these efforts, the government is also celebrating the GST Bachat Utsav across the country.

Government-run institutions are among the largest consumers and significantly influence demand, especially during festive seasons. However, the DFS, quoting the DPE advisory, has instructed that no expenditure should be incurred on gifts or related items for Diwali and other festivals by Ministries, Departments, and other organs of the Government of India.

The advisory emphasizes the importance of promoting fiscal prudence and responsible use of public resources. “It has been noticed that there is a prevailing practice of incurring expenditure on gifts on the occasion of Diwali and other festivals in certain Central Public Sector Enterprises (CPSEs),” the DPE advisory dated September 19 stated.

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

—

*Disclaimer: This story is from a syndicated feed. Only the headline has been edited.*
https://www.freepressjournal.in/business/finance-ministry-issues-advisory-to-rbi-other-financial-institutions-to-stop-wasteful-expenses-like-festival-gifts-to-curb-non-essential-expenditure