Govt Cracks Down on Car Purchases and Travel at Public Expense

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Govt Cracks Down on Car Purchases and Travel at Public Expense

The government has directed that all car purchases be discontinued in fiscal year 2025–2026 in an effort to cut costs. In addition, it has mandated that new residential, non-residential, and other structures and buildings be stopped, with the exception of those connected to the ministries of agriculture, health, and education.

Additionally, participation in all government-sponsored international seminars, symposiums, and workshops will be discontinued. The chance to travel overseas has, nevertheless, occasionally been preserved for necessary reasons.
The Budget Sub-Division-1 of the Ministry of Finance’s Finance Department has issued a directive in this respect. On July 8, it was signed by Deputy Secretary Muhammad Zakir Hossain.

It stated that the government has made decisions regarding the use of funds allotted to certain sectors in the operating and development budget of all ministries, divisions, other institutions, and subordinate departments, directorates, offices, autonomous organizations, public sector corporations, and state-owned companies in the fiscal year 2025–2026 in order to achieve austerity in government expenditures within the framework of the ongoing contractionary policy.

As part of this decision, the current fiscal year budget will no longer allow any kind of bulk allocations under the operating budget. Spending on any kind of car purchase will be discontinued. However, with the Finance Department’s consent, expenses may be incurred when replacing vehicles that are over ten years old under TO&E.

Under the operating budget, the construction of new residential, non-residential, and other buildings and establishments will be halted, with the exception of those related to the Ministries of Education, Health, and Agriculture. However, the directive specifies that if at least 50 percent of the ongoing construction work is completed, expenditures may be incurred with the Finance Department’s approval. Additionally, funding allocated for land acquisition will be suspended.

Conversely, the directive indicates that the purchase of all types of vehicles under the development budget for the current fiscal year 2025-26 will be halted. Simultaneously, expenditures for land acquisition can proceed, provided prior approval is obtained from the Finance Department, following all necessary acquisition procedures.

It also mentions that the entire portion of the GOB allocated for the Planning Commission in the ‘Development Assistance for Special Needs’ sector, as well as the GOB set aside as ‘Bulk Allocation’ for ministries and departments, can be utilized with prior approval from the Finance Department.

Furthermore, the notification states that participation in all types of foreign seminars, symposiums, and workshops funded by the government under the management and development budget will be discontinued. However, in certain cases, limited travel abroad may be permitted with the approval of the relevant authorities if deemed essential. This includes:

Foreign travel for pursuing Masters and PhD courses with government funding under the Management and Development Budget, as well as scholarships and fellowships provided by various development partners, universities, and countries.

Under the Management and Development Budget, participation in foreign training aimed at enhancing professional skills, excluding study tours, is allowed. Moreover, the foreign component of basic and essential training that aligns with internal training can be organized at suitable universities and institutions.

The Bangladesh Public Procurement Authority’s circular in Memorandum No. 1 dated January 2, 2024, must be closely adhered to when traveling abroad under the Pre-Shipment Inspection (PSI) and Factory Acceptance Test (FAT) procedures.
The Office of the Principal Advisor’s circular, found in Memorandum No. 1 dated December 9, 2024, must be adhered to for all international travel.

 

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