Foreign travel and vehicle purchase under government expenditures have been suspended.
According to Finance Division circular issued on Monday, no ministry or division will be allowed to seek additional budget allocations.
The Ministry of Finance has initiated the process of preparing the revised budget for the fiscal year 2025-26. In line with the government’s ongoing austerity policy, the principle of cost containment and expenditure control must continue in the revised budget as well.
All ministries and divisions have been asked to submit their revised budget estimates to the Finance Division by 9 November, following these directives.
The circular specified that the revised budget estimates must remain within the allocations of the original budget. No additional funds may be requested under any circumstances.
However, if required for implementing government priority programmes, ministries may adjust allocations between similar sectors within the approved expenditure ceiling.
Unutilised funds from the development budget, however, may not be transferred to the operating budget under any circumstances.
Additionally, land acquisition expenses under the operating budget must also remain halted, though such expenditure may be allowed under the development budget on specific conditions.
Certain other expenditures have been temporarily suspended, while limited exemptions have been granted based on importance.
Meanwhile, the Finance Division has issued 13 directives for formulating the revised Annual Development Programme (ADP), including keeping the number of projects limited.
Officials of the Finance Division said that government spending has already increased in various sectors.
Therefore, they are reviewing possible areas where costs can be reduced. The impact of these measures is expected to be reflected in the revised budget to be announced in December. Typically, the government revises the national budget in the latter half of the fiscal year, especially in March.
However, with the national election scheduled for February, the revision process has been brought forward this year.
