In the interest of economy and judicious utilisation of public resources, it is imperative that such expenditure be discontinued, said a letter from Sumantra Pal, economic advisor, Department of Public Enterprises, MoF, to PSU CEOs and administrative ministries of the government
New Delhi: After GST(Goods & Services Tax) bonanza, now time for some austerity measures by the government.
With the beginning of festival season, the Ministry of Finance has asked all the public sector undertakings including banks and insurance companies to stop prevailing practice of incurring expenditure on gifts.
It is not exactly not known what is the cause this move to ban gift buying by PSUs which has been there for years as they buy gifts during festival seasons to be distributed among government officials, staffers, prominent customers and media.
“It has been noticed that there is a prevailing of practice of incurring expenditure on gifts on the occasion of Diwali and other festivals in certain Central Public Sector Enterprises(CPSE). In the interest of economy and judicious utilisation of public resources, it is imperative that such expenditure be discontinued. Accordingly, all the CPSEs are requested not to incur expenditure on gifts for any festival,’’ said Sumantra Pal, economic advisor, Department of Public Enterprises, MoF, to PSU CEOs and administrative ministries of the government, on Sept 17.