The interim government has revised austerity measures for the current financial year (2025-26), dropping the provision of saving 20 per cent power and fuel oils from allocations under the annual budget.
The provision had been in force since the FY 2022-23, when the past Awami League government introduced the austerity measures in the wake of economic headwinds featured by a severe shortage of dollars against a price hike of primary energy on the global market.
The interim government that assumed office on August 8, 2024, following the ouster of the AL government in a mass uprising, however, has retained the other measures taken over the past three financial years, according to a circular issued by the Finance Division on July 8.
The suspension of block allocations in the non-development budget, which was introduced in the 2024-25 national budget, has been retained in the revised austerity steps.
The relaxing of the suspension of funds for the construction of buildings for ministries such as education, health and agriculture under the non-development budget in the past budget has also been retained.
Besides, the interim government has decided to maintain the relaxation made in the past budget for acquiring land under the development budget with prior approval from the finance ministry, without any change.
The revision of the austerity measures for the current financial year has also retained the ban on purchases of vehicles, aircraft and vessels under the non-development budget with the FY24 provision of the replacement of more than 10-year-old vehicles with prior approval from the Finance Division.
The step of the suspension of vehicle purchases introduced in FY23 under the development budget will continue.
Government officials鈥� overseas tours and training funded by foreign grants have been retained, while the ban on such tours and training under the government finance will remain in force.
It has also retained the withdrawal of ban in the past budget on land acquisition under the non-development budget. The ban was imposed in FY23.