The Ministry of Finance has introduced the continuation of austerity measures for the economic year 2024-25, extending the ban on overseas travel and new automobile purchases for authorities personnel. This degree will apply to both development and running budgets.
A formal notification detailing these regulations might be issued through the Finance Division in early July. The predicted limitations may additionally consist of restrictions on honoraria for construction paintings, land acquisition, schooling, and conferences in each sectors. However, fees on petrol, oil, lubricants, and energy will now not be subjected to those regulations.
The ban on government-funded overseas tour remains, halting all overseas journeys, workshops, and seminars beneath each the operating and improvement budgets. Essential overseas tour may nevertheless be accepted on a limited foundation via the proper government. However, authorities employees are nonetheless allowed to participate in overseas training subsidized by means of foreign governments, establishments, and improvement companions. They can also sign up in government-funded or development accomplice-funded foreign have a look at packages, which includes Masters and PhD guides below scholarships and fellowships.
Skilled officers involved in inspecting and tracking the great of goods and services financed via suppliers, contractors, and consulting firms can nevertheless journey distant places regardless of the ban on overseas tour.
Interestingly, regardless of the ban on vehicle purchases for authorities personnel on this monetary yr, the government’s buy committee has permitted the purchase of 261 cars for district and upazila government officers.
The finance minister, inside the finances speech for the approaching financial year 2024-25, announced that austerity measures might preserve on a restricted scale with plans for sluggish easing. The ban on buying new vehicles, watercraft, and aircraft for government use will persist, and the prohibition on government-funded foreign journey stays in location.
A finance department reputable referred to that there might be some rest inside the modern ban on creation and land acquisition prices. While savings from limiting honorariums for training and meetings are minimal, such regulations may additionally still be imposed to boost the concept of austerity.
This year’s budget is exceptionally constrained, resulting in fewer possibilities for implementing austerity measures. In the current monetary 12 months, the finance ministry mandated using a maximum of eighty% of the allocation for petrol, oil, and lubricants, and seventy five% for power bills. However, no such regulations might be implemented in the imminent economic 12 months because of growing gasoline and strength fees, which made it tough to adhere to those limits.
The finance ministry has maintained austerity measures for the reason that Covid-19 pandemic, in addition tightening them due to a greenback crisis following the Ukraine-Russia battle and a shortfall in sales collection. Before the closing country wide election, the authorities eased austerity measures for the Annual Development Programme. Officials said savings of about Tk15,000 crore in monetary yr 2022-23 because of these measures. The unique savings for the modern monetary year are but to be determined.
In line with the government’s austerity policy, the finances summary for economic 12 months 2024-25 suggests a reduction in funding in stocks and fairness by means of Tk13,715 crore in the revised price range for economic 12 months 2023-24 compared to the original allocation.