The government on Sunday issued a circular stopping the procurement of new vehicles for ministries and divisions for the financial year 2022-23 as part of its austerity measures taken so far to preserve the foreign exchange reserves and tame inflation.
A Finance Division directive on the day asked all government, semi-government, autonomous and other bodies to suspend buying of vehicles for FY-23 with the allocations under both operating and development budgets.
The directive said that the replacement of even old cars would also be under the purview of new decision.
A similar restriction on cars was imposed in 2020 for 6 months against the backdrop of the Covid-19 fallout.
Besides, only 50 % of allocated hospitality and training allowances will be available for government officials in this financial year.
The government expects to save up to Tk 5,500 crore for the austerity measures taken so far, reports media citing finance ministry sources.