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The Finance Division of the Ministry of Finance has issued strict directives on government spending to implement the budget for the current 2026–27 fiscal year. A circular issued last Monday ordered the suspension of new vehicle purchases, foreign travel, and non-essential building construction, along with the trimming of less important ADP projects.
According to the circular, no ministry or department can claim additional allocations beyond the predetermined limits of the original budget. Allocations must be reallocated within the limits of the original budget to implement government priorities and policies. All ministries and institutions have been asked to submit their revised budget proposals by November 26.
According to the Ministry of Finance circular, the purchase of all types of new cars or vehicles will be suspended in the current fiscal year. However, purchases can be made subject to the prior approval of the Finance Division in the case of replacing 10-year-old T&E-listed vehicles and for new government institutions. In this case, new or replaced vehicles, except for ambulances and security-related vehicles, must be electric.
However, this condition will be relaxed for development projects approved before July 8, 2026. The construction of all new buildings has been suspended, except for installations of the Ministry of Education, Health, and Agriculture. However, work on buildings that are 70 percent or more complete can be completed with the permission of the Finance Division. In addition, interest-free special car loans for government employees have been suspended, and allocation for land acquisition in the operational budget has also been banned.
Participation in foreign training, seminars, symposiums, and workshops at government expense will be completely banned. Going abroad will be permitted on a limited scale only in extremely urgent cases. However, although allocations can be kept for internal hospitality and organizing seminars, maximum cost-effectiveness has been instructed by avoiding ostentation.
The Finance Division has instructed to limit the number of projects in the Revised Annual Development Programme (ADP) and remove less important projects from the list. Instructions have been given to cut funds from slow-moving projects and allocate them to fast-implementing and important projects. Priority must be given to foreign loan and grant-assisted projects, human resource development, agriculture, power generation, environmental-climate protection, and projects scheduled for completion in the current fiscal year. No allocation proposal can be made for any new project without ensuring the local currency provision required for ongoing projects.
The preparation of the revised operational budget has been instructed to follow the 2026 National Pay Scale. In this case, the actual salary and allowance statistics for October of the current fiscal year can be considered as the basis. In addition, the Finance Division has directed to consider the actual income-expenditure trends of the first six months of the past two fiscal years and the first four months of the current fiscal year to finalize the revenue income and operational expenditure accounts.
https://thedailyexpress.news/news/business/1f1dd2c5-7b1d-6dd0-8686-4d590aed74d0