Written by The Banking Post
The Finance Division under the Ministry of Finance has imposed strict restrictions on public expenditure from block allocations as part of austerity measures for fiscal year 2025–26. A notification issued Tuesday outlines a comprehensive freeze on various spending categories under both the operating and development budgets.
What’s Suspended Under the Operating Budget
- Vehicle Purchases: No procurement of vehicles or water carriers
- Exception: Vehicles older than 10 years can be replaced with prior approval
- New Construction Projects:
- Prohibited unless in education, health or agriculture sectors
- Projects ≥50% completed may resume with Finance Division clearance
- Land Acquisition: All block allocation spending halted
Development Budget Restrictions
- Vehicle Procurement: Fully suspended
- Land Acquisition: Requires prior Finance Division approval
Travel Limits for Public-Sector Employees
- Foreign Seminars, Workshops & Symposiums: All suspended under both budgets
- Exception: Select official visits may proceed with government approval
Fiscal Impact
The new measures reflect the government’s intent to control discretionary spending, prioritise essential infrastructure, and ensure tighter budget execution. Financial analysts expect greater scrutiny in fund utilisation and enhanced focus on strategic sectors under these revised guidelines.
