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Published : 10 Jul 2025, 04:38 AM
In a sweeping cost-cutting measure, the interim government has announced a ban on the public purchase of vehicles and foreign trips by all government offices for the rest of the 2025-26 fiscal year.
The restrictions apply to both operational and development budgets.
The directive, issued by the Ministry of Finance on Tuesday, is part of broader austerity efforts aimed at reducing public expenditure.
According to the order, no government entity will be permitted to purchase any type of vehicle using funds from either the operating or development budgets.
The only exception allows for the replacement of transport pool (TO&E-listed) vehicles that are more than 10 years old, subject to approval by the Finance Division.
In addition to transport-related restrictions, the order also prohibits the construction of new residential, non-residential, or other types of buildings, except those under the education, health, and agriculture ministries.
Even in those cases, spending will only be permitted if construction is more than 50 percent complete and approved by the Finance Division.
No funds allocated for land acquisition or block allocations under either budget may be used without prior authorisation. All such expenditure must receive explicit approval from the Finance Division.
The directive also outlines spending limitations specific to the development budget. It states that no vehicles may be purchased under any development project, and land acquisition for these projects may only proceed after completing all formal procedures and receiving prior clearance from the Finance Division.
In addition, funds earmarked under block allocations, such as those administered by the Planning Commission for special development support, must not be utilised without approval from the Finance Division.
FOREIGN TRIPS CURTAILED
As part of the austerity policy, the government has also suspended all foreign travel by public officials for seminars, symposiums, and workshops under government-funded development projects.
However, the directive makes exceptions in specific cases.
Government employees may still travel abroad to pursue master’s or PhD programmes funded through foreign scholarships, fellowships, or development partner institutions, including universities.
Similarly, foreign training programmes deemed essential for professional capacity development and funded by the government will continue to be permitted.
The finance ministry has instructed all departments to follow the circular issued by the Chief Advisor’s Office on Dec 9 last year.
It read: “All levels of government officials must avoid recreational foreign trips… Government officers and employees should refrain from taking extended study leave.”
