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22 July 2024


Business Insider Bangladesh

Circular issued suspending some expenditure on operating, development budget

BI Desk || BusinessInsider

Published: 01:33, 5 July 2024  
Circular issued suspending some expenditure on operating, development budget

Representational photo

In the wake of the global economic condition, the Finance Division on Thursday issued a circular for pursuing austerity in the current fiscal year (FY25) by all the ministries, divisions, subordinate departments, directorates, offices, autonomous bodies, public sector corporations and state-owned companies.

The notification said allocations shown in the economic codes under the operating budget of the current fiscal year could be made in the following manner, reports BSS.

Under this fresh notification, all kinds of expenditure from block allocation (code no 3911111 and 4911111) will remain stopped.

It said maximum 80 percent of the allocated fund against '3211113-power', '3243101-petrol, oil and lubricant', '3243102-gas and energy' could be spent.

Construction of residential (4111101), non-residential (4111201) and other buildings (4111317) will remain stopped except the infrastructures under the operating budget on the ministries of Education, Health and Agriculture.

Expenditure on procurement for all sorts of vehicles ('4112101-vehicle', '4112102-river vessel' and '4112103-aircraft' will remain stopped. But, in case of replacing more than 10-year old TO&E included vehicles, the expenditure can be made subject to approval from the Finance Division.

Expenditure on '4141101-land acquisition' will remain stopped.

The circular signed by deputy secretary Md Helal Uddin said allocations shown in the economic codes under the ADP of the current fiscal year could be made in the following manner.

It said maximum 80 percent of the allocated fund against '3211113-power', '3243101-petrol, oil and lubricant', '3243102-gas and energy' could be spent.

Expenditure on procurement for all sorts of vehicles ('4112101-vehicle', '4112102-river vessel' and '4112103-aircraft' will remain stopped.

In case of '4141101-land acquisition', fund can be spent subject to following all sorts of formalities after taking prior approval from the Finance Division.

The reserve fund as GoB allocation against the Planning Commission under the title "development support for special necessity" and the full GoB fund reserved as "block allocation" against the ministries and divisions could be spent subject to prior approval from the Finance Division.

All kinds of foreign tours as well as participation in seminars and workshops will remain stopped under government's own funding.

But, considering indispensible circumstances, foreign tours can be made in a limited scale subject to taking approval from the concerned authorities in the following cases.

Foreign tours can be made for studying masters' and PhD course on government funding under the operating and development budget and in foreign funding against the scholarships and fellowships provided by various development partners, universities and countries.

Taking part in foreign training upon invitation or fully funded by foreign governments/institutions/development partners.

In case of making foreign tours under the Pre-shipment Inspection/Factory Acceptance Test (FAT), the number 1 section of the circular issued on January 2, 2024 by the Public Procurement Authority should be followed strictly.

But, considering indispensible necessities, such foreign tours under PSI/FAT can be made subject to taking approval from the Prime Minister's Office (PMO).

Walton