Govt tightens grip further on public spending

The government has taken some additional steps to control government expenditures by squeezing its operational costs to face the global economic crisis.

In a recent circular, the ministry of finance ordered that the procurement of official equipment, computers, and necessary items for the operational budget will be halted while land purchases will remain partially suspended.  

Government, semi-government, automated bodies, state-owned companies, and financial institutions are all subject to the directive, but procurements under development budgets will not be affected.

The ongoing Russia-Ukraine war has dealt a fresh blow to Bangladesh’s economy after two and a half years of strain from global corona crisis.

As a result of the war, food, energy, fertilizer, and raw materials prices have skyrocketed on the international market, which has led to a large increase in imports.

Therefore, foreign reserves have declined below $34 billion with the taka losing value against the dollar.

Under the new directive, 50 percent operational budget allocation for land acquisition will remain suspended. Besides, new work orders for construction of buildings and establishments will remain suspended.

Prior work orders will be allowed to spend 50 percent of allocated funds. procurement of office equipment, computers, and accessories will not be allowed.

A total of three circulars were issued on July 03 this year, suspending all types of vehicle purchases, and limiting accommodation, travel, and training costs to 50 percent.

Furthermore, funds for low-priority projects and honorarium for various committees in the development budget were temporarily halted.

The government also issued a circular on November 09 restricting foreign tours by government officials, including those from government, semi-government, automated bodies, state-owned enterprises, and financial institutions, under both operational and development budgets.

However, foreign tours have been allowed for officials’ higher education with foreign scholarships.

Source: Daily Sun