Nearly 50 such projects involving about Tk 500 crore are now awaiting clearance of the finance ministry.

In a bid to cut down on waste, the ministry last week restricted hiring of personnel and advisors and purchase of vehicles unless absolutely needed.

Increased payments and purchases, which are fuelling government expenditure, prompted the decision, sources said. Payments and allowances and goods and services currently claim about 45 percent of the revenue budget and this trend is rising.

According to a report of the Public Expenditure Review Commission (PERC), such spending grew by 38 percent in the last four years.

The move is the first in a series of long-term government strategy to trim down the administration, sources said. As per the donors' prescription, the government is likely to merge the ministries of finance and planning. The PERC also made similar recommendations.

The finance ministry's new policy, circulated to all ministries, says under the new arrangement, there will be an inter-ministerial committee that will deal with special requirements of hiring new personnel or purchasing vehicles.

The four-member committee headed by an additional secretary of the finance division will recommend or reject requisitions for such hire or purchase.

In case the committee accepts a proposal to hire new personnel, it will create appropriate posts on a yearly basis for the term of the project concerned. The committee will try to fill up these vacancies with serving government employees on deputation.

If appointment of new staffs become unavoidable, new employees for the first, second and third grades will be hired in the same way they are hired under the ADP. Fourth grade employees will however be hired on 'no work, no payment' basis.

The policy also discourages foreign training under these schemes.

The revenue-budget projects that are expected to get a go ahead soon include small farmers' development project, financial survey-2000 project, poverty alleviation through income generating activities, children development programme, Benapole Customs Office construction, women entrepreneur development, river and canal re-excavation projects.

The government is meanwhile negotiating with the World Bank over disbursement of the second installment of Development Support Credit. The WB may pump in between $150 million and 350 million through this instalment. The WB has emphasised cutting down public expenditure and tighter budgeting.