Some spending suspended amid fund crunch

The government has decided to squeeze certain spending under both new operating and development budgets at the very outset of the new financial year, in line with its ongoing belt-tightening measures.
Never before the government resorted to such a move only days after the adoption of the budget. Uncertainty over mobilization of enough resources is seen as the main reason.
Among the notable restrictions come foreign tours and car purchases, apart from cut-down expenses for fuel buys.
To this effect, the finance division issued Thursday a circular asking government ministries, divisions, departments, directorates, autonomous bodies, public-sector corporations, and state-owned companies to go by the decision during this just-commenced fiscal year 2024-25.
"Under the operating budget of the current fiscal year all kinds of expenditures from block allocation will remain suspended," says the must-do direction.
And a maximum 80 per cent of the funds allocated for electricity, petrol, oil and lubricant, gas and energy can be spent.
The notification further says construction of residential, non-residential and other buildings will halt, excepting the infrastructures under the ministries of Education, Health and Agriculture. However, funds can be spent for buildings which have already completed 70 per cent of works.
Also stays put spending on procurement for all sorts of vehicles - motorcar, water vessel, and aircraft.
However, the expenditure can be made with prior approval from the Finance Division in the case of replacing vehicles more than 10-year old and included in the TO&E category.
Spending on land acquisition will remain suspended under the operating budget.
The governmental dos and don'ts on the just-undertaken national budget worth Tk 7.97 trillion also apply to the development budget, as per the procedure set forth in the circular.
It says a maximum of 80 per cent of the allocated funds against electricity, petrol, fuel oil and lubricant, gas and energy can be spent.
Expenditure on procurement for all sorts of vehicles -- motorcar, water vessel, and aircraft -- will remain suspended.
Funds can be spent in the case of land acquisition subject to following all sorts of formalities after taking prior approval from the Finance Division.
"All kinds of foreign tours and participation in seminars and workshops under government's own funding will remain suspended," reads the government order.
However, it says, considering indispensable circumstances, the foreign tours can be made on a limited scale with prior approval from the authorities concerned for studying masters and PhD courses on government funding under the operating and development budgets and under foreign funding against the scholarships and fellowships awarded by various development partners, universities, and countries.
Moreover, taking part in foreign training against invitation or full funding by foreign governments or institutions or development partners will be accepted.
Going abroad to conduct pre-shipment inspection (PSI)/factory acceptance test (FAT) is acceptable provided a circular issued on January 2, 2024 by the Public Procurement Authority is "followed strictly".
Also, considering the indispensible necessities, such foreign tours under PSI/FAT, tours can be made with the all-clear from the Prime Minister's Office.

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