Austerity drive govt orders halt on festival gifts

New Delhi: The government has asked all key ministries, central public sector enterprises (CPSEs), banks, and financial institutions to halt spending on Diwali and other festival gifts as part of an austerity drive.

The move aims to promote fiscal discipline, curb non-essential expenditure, and ensure prudent use of public funds. "It has been decided that no expenditure shall be incurred on gifts and related items for Diwali and other festivals by Ministries/Departments and other organs of the Government of India," said an official memorandum dated September 19, issued by the Department of Expenditure. The order is to be implemented with immediate effect, the memorandum added. Copies have been sent to all ministries, CPSEs, public sector banks, and financial institutions.

In the past, the Centre has also curbed "wasteful expenditure" to optimise public funds and prioritise essential spending.