Beginning July 1, the finance ministry has tightened control over expenses by ministries, state agencies, and public corporations to ensure austerity in spending for the fiscal year 2024-25.
In a circular issued today, the finance division announced that all expenses from block allocations will be halted.
From the operating budget, ministries, divisions, and other public agencies will be allowed to spend a maximum of 80 percent of total allocations for electricity, petroleum, and gas during the fiscal year 2024-25.
Except for the education, health, and agriculture ministries, all construction of residential, non-residential, and other buildings will be stopped. If 70 percent of any building under construction has been completed, agencies may continue work based on approval from the finance division.
“From the allocated fund, the purchase of all types of vehicles, water vessels, and aircraft will be halted,” the circular stated. However, ministries can replace vehicles older than ten years upon approval from the finance division. Land acquisition from the operating budget allocation will also be halted.
Under the development budget, ministries can spend up to 80 percent of allocated funds on electricity, petroleum, and energy bills. The finance division has also imposed restrictions on the procurement of vehicles, water vessels, and aircraft under the development budget.
For land acquisition, ministries and state agencies can acquire land based on clearance from the finance division, provided they complete all procedures.
The finance division has also imposed curbs on foreign travel by government officials. It stated that all foreign travel and participation in workshops or seminars abroad by public employees will be halted based on government finance.
However, if essential, foreign travel can occur upon approval from appropriate authorities, according to the circular.
