2024-07-04 19:37:39
The Ministry of Finance has issued a new circular with the aim of austerity in government expenditure. This circular has been issued in view of the current global economic situation. This circular provides guidance on matters related to expenditure of funds allocated to various sectors of the government, starting from foreign travel of government employees.
According to the circular, participation in all types of foreign travel, workshops and seminars at the government’s own expense will be stopped. However, travel abroad may be permitted in certain cases with the approval of the appropriate authorities if such travel is essential.
In the cases where foreign travel can be done, they are- participation in Masters and PhD courses with foreign funding under the government funding under the management and development budget, various development aid organizations, scholarships or fellowships given by the university and the country. Participation in overseas training organized at the invitation and fully funded by a foreign government or institution or development partner.
Bangladesh Public Procurement Authority has been asked to strictly follow the circular issued on January 2, 2024 in case of foreign travel under Preshipment Inspection (PSI) or Factory Acceptance Test (FAT). If absolutely necessary, prior approval of the Prime Minister’s Office should be taken in case of foreign travel under PSI or FAT.
In the circular of the Ministry of Finance, some other guidelines have been given for austerity. In the current fiscal year 2024-2025 budget, the guidelines for how much money can be spent from various economic codes under the operating budget have been given in the circular.
According to the circular, the expenditure will be stopped from all types of wholesale allocation. A maximum of 80 percent of the allocated funds can be spent on electricity, petrol, oil and lubricants and gas and fuel.
Construction of new residential, non-residential or other buildings will be stopped except for Ministry of Education, Health and Agriculture-related establishments under the operating budget. If the ongoing construction work is at least 70 percent completed, it can be spent with the approval of the Finance Department.
Expenditure of all types of vehicles (motor vehicles, watercraft, aircraft) will be stopped. However, in case of replacement of ‘TO&E’ vehicles more than 10 years old can be spent with the approval of Finance Department. The money allocated to the land acquisition sector will be closed.
The circular has also given guidelines on how to spend the development budget for the current financial year 2024-2025. It has been said that a maximum of 80 percent of the allocated money can be spent on electricity, petrol, oil and lubricants, gas and energy sectors and the purchase of all types of vehicles (motor vehicles, watercraft, aircraft) will be stopped.
Expenditure can be made with prior approval of Finance Department following all formalities in land acquisition. The entire portion of GOB reserved under ‘GOB (Government of Bangladesh)’ in favor of Planning Commission in ‘Development Assistance for Special Needs’ and ‘Bulk Allocation’ in favor of Ministries or Departments can be spent with prior approval of Finance Department.
According to the circular, the government has taken these decisions by spending the money allocated in the management and development budget of all ministries, departments or other institutions under the jurisdiction, directorates, offices, autonomous organizations, public sector corporations and state-owned companies in the fiscal year 2024-2025 in order to reduce government expenditure.
Earlier in the circular issued on May 12, 2022, it was said that all types of foreign travel, including exposure visits, educational tours, APA and innovation trips, participation in workshops or seminars, will be suspended until further orders in view of post-Corona economic recovery and global crisis.