Sweeping austerity reinforced in public spending

Procurement of all types of vehicles is suspended, foreign tours using public funds barred and spending on new building construction restricted during this fiscal year under a fresh government austerity course.

 Finance Division issued Wednesday a notification to this effect, stating that the decisions have been taken to "ensure the proper use of limited resources, bringing inflation down to a tolerable level, and maintaining macroeconomic stability".

The notification mentions that the restriction will be applicable to government, autonomous, state-owned, statutory, and public-sector corporations as well as state-owned companies and financial institutions.

"All types of spending from the block allocations will remain suspended," says the moratorium interdiction.

 Government offices have been barred from spending funds under the operating and development budgets for the procurement of motor vehicles, watercraft or aircraft during the fiscal year 2026-27.

Also, the government has suspended the interest-free loan facility for the public-sector employees to buy vehicles.

However, they will be able to buy vehicles for the replacement of those older than 10 years or for newly established government institutions, subject to approval from the Finance Division. Except for ambulances and vehicles used for security purposes, any replacement or newly purchased motor vehicles (jeep/car) must be a Full Electric Vehicle (FEV), says the notification, with intent to cut fuel costs.

Also suspended is the spending of funds for land acquisition during the current fiscal year.

All foreign tours by spending public funds for training programmes, seminars, symposiums and workshops have been suspended.

However, government employees are allowed to pursue Master's and PhD programmes under scholarships or fellowships funded by foreign governments, universities, institutions or development partners.

The notification also asks the government offices to ensure "value for money in the case of every spending".

syful-islam@outlook.comGovernment