Spending cut by 10pc; restriction on car purchase
Rejaul Karim Byron
The government has cut back expenditure by 10 percent on some particular items in the current revenue and development budget and placed a restriction on the purchase of vehicles to offset the impact of global spike in fuel prices.Finance Division in a circular yesterday said a culture of wasteful expenditure has developed among different ministries and departments. The government has therefore taken some austerity measures to ensure the best use of its limited resources. Allocation of petrol and lubricant for different ministries, divisions and departments under them has been reduced by 10 percent. The ministries have been asked to cut the monthly fuel allowance against a car by 10 percent. Allocation for "other expenditures" under supply and services in the revenue budget and annual development projects has been lowered by 10 percent. A finance division source said the daily office expenses fall into this category for which budgets ranging from Tk 50,000 to 1 crore have been allocated in favour of different ministries, departments and corporations. New projects or those already in the process of getting approval must not have provisions for cars. However, vehicles can be hired if it is essential for a particular project. Moreover, if there is a provision for purchasing vehicles for an approved or revised approved project under ADP, purchase of the vehicle will be suspended for the moment if the vehicle has not been already purchased. Approval will have to be obtained from finance division for purchasing cars under the revenue budget. The per head entertainment allowance for meetings in various ministries, departments, directorates, and autonomous bodies has been reduced to Tk 6 from earlier Tk 12. Lighting in buildings, streets, islands, and setting up of arches will have to be avoided by government, semi-government, and autonomous bodies to scale down the waste of electricity. Austerity will have to be practised also in the observance of different 'days' and 'weeks'. Besides, electricity saving bulbs will have to be installed to bring down the consumption of electricity. If necessary infrastructure and facilities are available, the petrol-run government vehicles will have to be converted to CNG. No new vehicles under revenue or development projects can be on the road before they are converted. Permission of the finance division will be required for the expenses to be paid in foreign currencies. Essential foreign tours of ministers, state ministers, deputy ministers, and secretaries, contributions to international organisations and repayment of the capital, and interests on foreign loans will be outside the purview of this rule. The ministries have been directed to make economical use of utilities and pay bills for those services in time. The finance division will not accept proposals for any allocation additional to the approved budget. The proposals will be accepted only if they are essential and sent with the approval of the secretary of the ministry concerned. Besides these measures, the government last week introduced two-day weekly holiday to cushion the effects of fuel price hike on the economy.
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