The government has suspended the purchase of all types of motor vehicles, watercraft and aircraft under both the development and operating budgets for the 2026–27 fiscal year as part of a broader austerity drive aimed at ensuring prudent public spending and maintaining macroeconomic stability.

The directive, issued by the Finance Division in a circular on Wednesday, also temporarily halts government-funded foreign travel for officials and the interest-free special loan facility for purchasing vehicles.

The restrictions apply to government ministries, autonomous and statutory bodies, state-owned enterprises, public sector corporations, state-owned companies and financial institutions.

According to the circular, no budget allocation for purchasing vehicles may be spent during the current fiscal year. However, the restriction does not apply to replacing vehicles that are more than 10 years old. Newly established government entities may also procure essential vehicles with prior approval from the Finance Division.

The circular further states that, except for ambulances and security vehicles, all replacement or newly purchased government jeeps and cars must be fully electric vehicles (FEVs).

Government-funded overseas participation in training programmes, seminars, symposiums and workshops has also been suspended. Exceptions have been made for programmes financed by foreign governments, development partners or international organisations, as well as overseas study under scholarship or fellowship schemes, mandatory foreign components of training, and essential technical visits such as pre-shipment inspections and factory acceptance tests.

The government has also barred new construction of residential, non-residential and other buildings under the operating budget. However, projects that are at least 70% complete may be finished with Finance Division approval. Land acquisition under the operating budget has also been suspended, while acquisition under the development budget will require prior approval.

The Finance Division said the measures are intended to ensure the most effective use of public funds while keeping inflation under control and preserving macroeconomic stability.