To navigate ongoing global economic headwinds, the finance ministry has issued yet another circular in a bid to reduce government expenditure, which provides guidance on spending funds allocated to different sectors of the government, starting from foreign travels.
As per the circular issued Thursday, participation in all types of foreign travel, workshops and seminars at the government's expense has been halted. However, if such travel is essential, it may be allowed in some cases with approval from relevant authorities.
Participation in Master's and PhD courses with foreign funding, with the help of government support under the Management and Development Budget, various development cooperative organisations, and scholarships or fellowships given by any university or the country are exempted from the restrictions.
Apart from this, participation in trainings abroad – if fully funded by a foreign government, organisation, or development partner, will be allowed upon invitation.
Also, the circular issued by Bangladesh Public Procurement Authority on January 2 this year must be followed strictly in the case of foreign travel under the Pre-Shipment Inspection (PSI) / Factory Acceptance Test (FAT).
If absolutely necessary, prior approval of the Prime Minister's Office should be secured in case of foreign travel under PSI or FAT.
The finance ministry circular has issued a number of other guidelines for austerity including how much money can be spent from various economic codes under the operating budget of ongoing FY25.
According to the circular, the expenditure will be halted from all types of lump sum allocation. Apart from this, a maximum of 80 per cent of the allocated money can be spent on electricity, petrol, oil and lubricants and gas and energy sectors.
Construction of new residential, non-residential or other buildings will be stopped except for the ministries of education, health and agriculture-related establishments under the operating budget.
If the ongoing construction is at least 70 per cent completed, funds can be spent following approval from the Finance Division.
