Govt orders spending cuts across 9 sectors amid West Asia war

The government has issued a circular directing ministries and departments to reduce operating expenditure across nine key areas, as authorities move to manage fiscal pressure stemming from ongoing tensions and conflict in the Middle East.

The directive, issued recently by the Cabinet Division, will remain in force until further notice.

According to the circular, fuel consumption for government vehicles will be cut by 30 per cent, while interest-free loans for vehicle purchases by officials and all government-funded foreign training programmes have been suspended.

Expenditure on internal training will be reduced by 50 per cent, except for essential programmes. Spending on entertainment at meetings and seminars will also be halved, while overall seminar and conference costs will be trimmed by 20 per cent.

Travel-related expenses are set to decrease by 30 per cent under the new measures.

In a significant austerity step, the government has imposed a complete halt on the purchase of vehicles, watercraft, aircraft and computers in the public sector. Land acquisition costs have also been reduced by 100 per cent.

The circular further instructs government offices to cut fuel, electricity and gas consumption by 30 per cent. Renovation costs will also be scaled back, with residential building expenses reduced by 20 per cent and non-residential renovation costs by 50 per cent.

The decisions were approved at the fourth cabinet meeting held on April 2, chaired by Prime Minister Tarique Rahman.

Officials say the measures are part of a broader effort to contain public expenditure and ensure economic stability amid external uncertainties linked to the West Asia situation.