DHAKA, April 5, 2026 (BSS) - In a major move toward fiscal prudence, the government has slapped a series of rigorous expenditure controls and budgetary tightening measures for the revised budget of fiscal year 2025-26 (FY26). 

The Ministry of Finance today issued a circular outlining these austerity measures, citing the need to navigate global economic volatility and foreign exchange pressures stemming from ongoing tensions and conflict in the Middle East.

The directive, issued by the Budget Subdivision of the Finance Division, mandates strict adherence to new spending ceilings for the remainder of the fiscal year. These controls apply to all government office, semi-government organizations, autonomous bodies, statutory organizations, public sector corporations and state-owned commercial and financial institutions.

The government has defined specific percentage-based limits for various operating expenses. 

Institutions are required to cap Entertainment and Hospitality expenditures at 50% of unused funds. Domestic Training is similarly restricted to 50% of unused funds, though this rule excludes Government Training Institutes. 

Spending on Utilities and Travel, which encompasses costs for electricity, gas, fuel, and petrol, must remain within 70% of the remaining allocation.

If these utilities and travel expenses exceed the 70% ceiling, the circular warns that no claims for arrears will be considered in the future. 

Seminars and conferences are limited to 80% of the remaining allocation, and any hospitality-related expenses within these events must strictly stay under a separate 50% cap.

Funding for interior beautification is limited to 50% of unused funds. Generally, expenditures for residential and non-residential buildings are capped at 50% of the original allocation.

However, this 50% limit for buildings may be exceeded if at least 70% of the construction work is already complete, provided that mandatory prior approval is obtained from the Finance Division.

To further conserve national resources, the government has implemented a total suspension of spending in several high-value sectors.

For the duration of the revised budget, the government has strictly prohibited all foreign travel and training, suspended the procurement of vehicles and computer equipment, banned land acquisition under the operating budget without prior approval, and halted interest-free special car advances for officials