Dhaka: The government has unveiled a comprehensive set of austerity measures aimed at curbing public expenditure amidst rising economic challenges. The measures include the suspension of interest-free car loans for government officials and a substantial reduction of 30% in fuel consumption for official vehicles. These decisions were made during a Cabinet meeting chaired by Prime Minister Tarique Rahman at the Jatiya Sangsad complex and were announced at a Cabinet Division press briefing on Friday.
According to United News of Bangladesh, as part of the austerity measures, interest-free loans for purchasing vehicles by public servants have been suspended until further notice. Under the existing policy, officials of the rank of deputy secretary and above are eligible for interest-free loans up to Tk 30 lakh for vehicle purchases. In addition, they receive a monthly allowance of Tk 50,000 for maintenance and driver salary, along with an annual depreciation benefit of 10%. However, the Cabinet has now suspended this loan facility.
In addition to suspending the loan facility, the government has put a hold on all government-funded foreign training programs until further notice. Domestic training-related costs will see a reduction of 50%, while hospitality expenses for meetings and seminars will be cut by 50%, and seminar and conference expenses will be reduced by 20%. Travel expenses are also set to decrease by 30%.
To further cut costs, the government has decided to reduce fuel consumption by 30% for official vehicles used by the Prime Minister, ministers, and state ministers. This decision mandates a 30% reduction in monthly fuel usage for government vehicles, alongside a similar reduction in energy consumption, including electricity and gas, in government offices.
Additionally, the government has suspended all purchases of vehicles, watercraft, aircraft, and computers in the public sector until further notice. Expenditure on the beautification of residential buildings will be reduced by 20%, and for non-residential buildings by 50%. Land acquisition activities will also remain suspended for the time being, as per the briefing.