Mumbai, September 23: The Finance Ministry has directed all Central Public Sector Enterprises (CPSEs) to refrain from purchasing gifts for Diwali and other upcoming festivals, citing the need for prudent and judicious use of public funds. The move comes as the government promotes GST 2.0 and the "GST Bachat Utsav" to encourage consumer spending during the festive season. While reduced GST rates aim to boost festive cheer, CPSEs are being asked to exercise restraint in non-essential expenditure. The directive focuses on government-owned enterprises, leaving autonomous bodies and other organisations unaffected.

As reported by Business Standard, the Department of Public Enterprises (DPE) highlighted that the prevailing practice of spending on festive gifts by CPSEs should be discontinued in the interest of the economy and prudent utilisation of public resources. The letter, addressed to the chief executives of all CPSEs, was also shared with secretaries of their respective administrative ministries to ensure strict compliance with the directive. Officials noted that this is part of a continuing effort to curb non-essential expenditure while maintaining fiscal discipline. New GST Rates Rollout From Today: GST 2.0 Takes Effect With Major Tax Reforms Aimed at Easing Prices.

The directive echoes past austerity measures issued during periods of fiscal stress, most notably in September 2020, when government departments and CPSEs were instructed to halt the printing of calendars, diaries, festive greeting cards, and coffee table books. That restriction was partially relaxed in December 2022, allowing the printing of calendars again. Unlike previous broad measures, the latest order specifically targets CPSEs, leaving other government entities unaffected. New GST Rates: GST 2.0 Drives Auto Sales, Hyundai Motor Records 11,000 Dealer Billings on Day 1 of Navratri, Highest in 5 Years.

The Finance Ministry’s move comes even as the government encourages citizens to celebrate the festive season under the GST 2.0 framework, aimed at boosting consumption through reduced Goods and Services Tax rates. While employees and recipients of CPSE gifts may notice an austere festive season, the government emphasised that the measure ensures better management of public funds. According to Business Standard, the fresh instructions, signed by PK Singh, Joint Secretary (Government of India), take effect immediately and reinforce the ongoing effort to promote fiscal prudence across state-run enterprises.

TruLY Score by LatestLY
Rating:3

TruLY Score 3 – Believable; Needs Further Research | On a Trust Scale of 0-5 this article has scored 3 on LatestLY, this article appears believable but may need additional verification. It is based on reporting from news websites or verified journalists (Business Standard), but lacks supporting official confirmation. Readers are advised to treat the information as credible but continue to follow up for updates or confirmations

(The above story first appeared on LatestLY on Sep 23, 2025 11:00 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).