To spend less, govt suspends investing in vehicles for 2020
The government has made a decision not to acquire new vehicles under all operating and creation expenses for the others of 2020 within its austerity measures in face of falling revenues due to the coronavirus pandemic.
Procurement of new or perhaps alternative vehicles under all expenditures of authorities, semi-authorities, autonomous and other firms would be on keep until December 31, according to a finance ministry circular.
The devastating coronavirus pandemic has compelled the federal government to embrace austerity as the shutdown has taken the economy to a screeching halt, drying up revenues.
As the federal government had to allocate additional funds for several sectors to combat the pestilence, it had suspended funding for all low priority jobs in the revised total annual development program for the recent past fiscal year.
The cost-slicing would continue in the brand new fiscal year as there is no signal of the contagion petering out.
The coronavirus has so far infected 175,494 in Bangladesh, killing 2,238 by yesterday.
The federal government may order to give utmost importance to high and medium priority projects in FY21, while any fund allocation for the low-priority projects will be suspended before pandemic disappears, said the official of the finance ministry.
The federal government had also planned to ban foreign tours of government officials within the austerity measures, but such order wouldn't normally necessitate as a result of the pandemic, the state said.
Previously, the ADP for the brand new fiscal year saw lower-than-usual allocation growth just as the government has embarked in bankrolling massive stimulus packages amounting to Tk 103,117 crore announced to jumpstart the economy.
Earnings collection fell massively for the next consecutive month in-may seeing that incomes and demand for products and services crashed as a result of the lengthy shutdown devote destination to battle the Covid-19 pandemic.
In May, the National Plank of Revenue made Tk 13,530 crore, that was 33 % down from this past year. The collection got crashed 50 per cent year-on-year to Tk 9,975 crore in April.
Economists said the federal government would not manage to achieve the mark of revenue mobilisation for the fiscal time of 2020-21.
In another circular, the finance ministry said the doctors, nurses and healthcare personnel who are directly treating coronavirus patients will be entitled to a special honourarium equivalent to the basic pay of 8 weeks.
The government has already allocated funds to medical division with the objective. The honourarium will be furthermore to other personal supports previously announced, the find said.
In April the federal government said it decided to compensate all government staff who would contract Covid-19 while discharging duties amid the coronavirus outbreak.
The beneficiaries would include doctors, nurses and health officials and also officials of police agencies and military.
A government worker on grade 1-9 are certain to get Tk 10 lakh if the individual agreements the disease. The amount will be Tk 50 lakh if he/she dies, regarding to a circular.
For grade 10-14, the amount will be Tk 7.5 lakh and Tk 37.50 lakh respectively, while for quality 15-20, it'll be Tk 5 lakh and Tk 25 lakh, the circular added.
