Government reduces monthly car maintenance allowance for officials

Under its cost-cutting policy, the government has moved to halve the monthly vehicle maintenance allowance for officials, reducing it from Tk 50,000 to Tk 25,000.

The decision follows the suspension of interest-free car loans for officials, which was announced on July 9. The Public Administration Ministry has sent the proposal to the Finance Ministry for final approval.

Earlier, the government used to provide interest-free loans of up to Tk 30 lakh for officials from the up-secretary level to top bureaucrats to purchase cars.

The scheme, introduced in 2017, was suspended last Thursday.

The move is part of the government's broader cost-cutting policy, which has also imposed restrictions on new building construction, land acquisition, and foreign tours and training funded by the government.