Govt bans foreign trips, vehicle purchases at public expense

The government has imposed sweeping austerity measures, including a ban on foreign travel at public expense and the purchase of vehicles, citing global economic uncertainty and tensions in the Middle East.

In a circular issued on Sunday (April 5), the Finance Division outlined cost-cutting directives under the revised budget for FY2025–26.

Under the new measures, all government-funded foreign trips—particularly for training, seminars and workshops—have been suspended. Procurement of government vehicles has also been halted.

Spending on hospitality has been capped at 50 per cent of allocated funds, while internal training expenses conducted by ministries and agencies have also been limited to 50 per cent.

However, official training institutions are exempt from this restriction.

Expenditures on electricity, fuel and travel have been restricted to a maximum of 70 per cent of allocated budgets, with no provision for adjustment beyond that limit.

Seminar and conference spending will be allowed up to 80 per cent of allocations, but hospitality costs must remain within the 50 per cent ceiling. Construction expenditure has been reduced by half, although projects with over 70 per cent completion may continue subject to approval from the Finance Division.

The circular also suspends the purchase of computers and related equipment, and halts land acquisition under operational budgets, though such spending may proceed under development budgets with necessary approvals.

Officials said the measures aim to ensure fiscal discipline and mitigate the impact of global economic pressures.