New Delhi: No gifts can be given during the festive season, particularly Diwali, using public funds, the Ministry of Finance has directed all ministries, departments and employees.

The order is aimed towards bringing about fiscal discipline and curbing non-essential expenditure, a notification has said.

According to officials, crores used to be spent in distributing expensive gifts during Dussehra and Diwali by government offices till a few years ago. The practice has been curbed, but some spending still continues.

The Department of Expenditure under the Ministry of Finance has said the move to stop spending public funds on festive season gifts departments or ministries may exchange or give to high-ranking officials, is part of a larger policy of ‘curbing non-essential expenditure’.

According to the notification signed by P K Singh, joint secretary to the Government of India, the new policy continues “efforts in the interest of prudent and judicious use of public resources”.

“The Ministry of Finance, Department of Expenditure, has been issuing instructions from time to time aimed at promoting fiscal discipline and curbing non-essential expenditure. In continuation of these efforts and in the interest of prudent and judicious use of public resources, 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,” the notice said.

The order comes into effect immediately. Dussehra will be celebrated on October 2 and Diwali on October 20.

Shiv Sena MP Milind Deora was among the first to welcome the move. “I welcome @FinMinIndia’s directive to Union Government Departments & PSUs not to splurge on festive gifts. For too long, politicians & bureaucrats have been the biggest beneficiaries of such spending at taxpayers’ expense.I urge state governments to follow suit,” he posted on X.