Staff Reporter :
In response to the ongoing economic crisis, the government has introduced a new austerity programme to curb public expenditure from the start of the new fiscal year (2024–25), which began on July 1.
The Finance Ministry issued a circular on Thursday, tightening control over expenses by ministries, state agencies, and public corporations to ensure strict spending measures.
The austerity measures include a ban on unauthorised travel for government officials and a halt to all types of land acquisition. Additionally, there are restrictions on purchasing vehicles for officials.
The Finance Ministry’s circular also announced that all expenses from block allocations will be suspended.
Ministries, divisions, and other public agencies will be limited to spending a maximum of 80 percent of their total allocations for electricity, petroleum, and gas from the operating budget during the current fiscal year.
Exceptions to some restrictions have been made for the education, health, and agriculture ministries, while all construction of residential, non-residential, and other buildings will be stopped.
However, if 70 percent of any building under construction has been completed, agencies may continue work with approval from the finance division.
The purchase of all types of vehicles, water vessels, and aircraft from allocated funds will be halted, although ministries can replace vehicles older than ten years with approval from the finance division. Land acquisitions from the operating budget allocation will also be halted.
Under the development budget, ministries can spend up to 80 percent of allocated funds on electricity, petroleum, and energy bills. Restrictions on the procurement of vehicles, water vessels, and aircraft under the development budget have also been imposed. Land acquisition is allowed only with clearance from the finance division, provided all procedures are completed.
The finance division has also placed restrictions on foreign travel by government officials. All foreign travel and participation in workshops or seminars abroad by public employees will be halted based on government finances. However, if deemed essential, foreign travel can occur with approval from appropriate authorities, according to the circular.