Vehicle purchase, foreign tour banned in FY24 budget

The government has banned all kinds of vehicle purchase in the Annual Development Programme (ADP) budget for the fiscal year 2023-24 aimed at reducing its expenses amid the ongoing global economic headwinds.

It has also banned foreign tour for all development and operating budgets.

However, if the hosts or contractors bear the foreign tour cost, then the government will take it into consideration.

The finance ministry issued a circular in this regard on July 02, imposing some restrictions on FY24 budget expenses to tackle the global economic crisis.

The ministry took the move as the country is facing severe foreign reserve crisis while major foreign currency earning sectors such as remittance and exports are not performing well due to the current global economic crisis.

Importers failed to open letters of credit (LCs), creating severe supply shortage in the domestic market. The government already imposed restrictions on import of luxury goods, and also increased LCs margin, even though reserves crisis is yet to be solved.

Now the government is taking out loans from international lenders such as IMF and World Bank, though foreign trips and vehicle purchase are still continuing even after huge criticism. Finally, the finance ministry imposed restrictions in FY24 budget.

The ministry in the circular said the operating budget, land acquisition, setting up of buildings and structures will not be allowed in this fiscal year. Both operating and ADP budgets, electricity expenses are limited to 75 per cent of total allocation.

It also said participation in workshops and seminars abroad will stop for both development and operating budgets. But restrictions will be relaxed if anyone goes abroad to complete master’s degree and PhD course.

Besides, if any university or organisation offers full scholarship, restrictions will not be applicable.

The circular also said if the governments of other countries and foreign organisations invite anybody and bear all expenses, then tours will be allowed.