In the context of the ongoing US-Israel conflict involving Iran and growing global economic uncertainty, the government has imposed strict controls on public spending. The Finance Division of the Ministry of Finance issued a circular on Sunday (April 5), directing cuts and suspensions in expenditures across multiple sectors in the revised budget for the 2025–26 fiscal year.
According to the directive, all forms of government-funded foreign training, seminars, symposiums, and workshops will be completely halted. Additionally, a ban has been imposed on the purchase of all types of vehicles.
The circular states that up to 50 per cent of the unspent allocation for hospitality expenses may be used, while spending on internal training programmes conducted under ministries or departments’ own arrangements is also capped at 50 per cent. However, activities of government training institutions will remain outside these restrictions.
Stricter controls have also been imposed on electricity, fuel, and travel expenditures. In these sectors, only up to 70 per cent of the remaining allocation may be spent, and any excess will not be eligible for future claims.
While up to 80 per cent of the allocation may be used for seminars and conferences, related hospitality expenses must be kept within 50 percent.
In addition, spending on building construction has been reduced by half. However, projects that have already achieved more than 70 per cent physical progress may continue, subject to approval from the Finance Division.
A ban has also been imposed on the purchase of computers and related equipment. Furthermore, spending on land acquisition under the operational budget has been suspended, although such expenditures may proceed under the development budget with the necessary approvals.
The circular, signed by Deputy Secretary Mohammad Zakir Hossain of the Finance Division, states that these measures have been taken to cope with global economic pressures and to ensure discipline in public spending.