Govt tightens spending: Foreign travel suspended for its employees

The government has imposed sweeping austerity measures, suspending foreign travel at public expense and tightening controls on a range of expenditures for government employees, as global economic uncertainty and ongoing conflict in the Middle East weigh on the economy.

In a circular issued on Sunday, the Finance Division under the Ministry of Finance outlined revised budgetary controls for the 2025-26 fiscal year, directing ministries and government agencies to scale back spending across multiple sectors.

Under the new directives, all foreign trips funded by the government-including participation in training programmes, seminars, symposiums and workshops-have been suspended. At the same time, spending on the purchase of vehicles has been halted entirely.

The circular also introduces strict ceilings on operational expenses. Up to 50% of the unspent allocation for hospitality can be used, while internally managed training programmes will be limited to a maximum of 50% expenditure.

However, activities conducted by government training institutions will remain exempt from these restrictions. Spending on electricity, fuel and travel has also been capped, with agencies allowed to utilise no more than 70% of their remaining allocations. Any expenditure beyond this limit will not be eligible for additional budgetary support in the future.
For seminars and conferences, authorities may spend up to 80% of the allocated funds, but hospitality costs associated with such events must be kept within 50%.

The government has also cut construction-related spending by half. Projects that are more than 70% complete may continue, subject to approval from the Finance Division.

In addition, the purchase of computers and related equipment has been restricted, while land acquisition under the operational budget has been suspended. Such spending, however, may proceed under the development budget with prior approval.

The circular, signed by Deputy Secretary Md Zakir Hossain of the Finance Division, said the measures are aimed at maintaining fiscal discipline and managing external pressures stemming from global developments.The move signals a broader effort by the government to rein in public spending and safeguard macroeconomic stability amid rising costs and uncertain global conditions.