The government is considering halving the fuel and maintenance expenses for cars used by entitled officials as part of public expenditure cuts.
The finance ministry has written to the secretaries of the public administration, law, and defence ministries, as well as the Election Commission and the parliament secretariats, asking them to look into the matter and take necessary decisions.
Officials with the rank of a deputy secretary or above receive a one-time Tk 30 lakh allocation from the revenue budget to purchase cars, along with Tk 50,000 per month for maintenance. Citing the prime minister’s instruction, the ministry has requested the secretaries to decide whether the monthly allowance can be reduced to Tk 25,000.
In the letter sent to the five secretaries on July 9, the ministry said, “With a view to ensuring proper utilisation of limited resources, keeping inflation at a tolerable level, and maintaining macroeconomic stability, there is scope to slightly reduce the financial assistance that entitled officers receive as car maintenance allowance.
“There is a directive from the honourable prime minister to set the motor vehicle maintenance allowance at Tk 25,000 per month instead of Tk 50,000.”
The letter, signed by Finance Ministry Deputy Secretary Zakir Hossain, said, “In light of the directive, it is requested to take the necessary initiatives to examine and take action regarding the allowance reduction.”
The move has drawn sharp reactions from within the administration. Over the last two days, many officers at the Secretariat have expressed their dissatisfaction to several policy-level secretaries. Some top secretaries have also discussed the matter among themselves, Secretariat sources said.
Seeking anonymity, a Local Government Division official told The Daily Star yesterday that the government has already suspended car loans for entitled officers, which is fine; but such an initiative for those who are already receiving the benefit is unexpected.
When asked for comments, public administration expert Firoz Mia told this newspaper, “The car maintenance allowance is basically provided as a compensatory allowance. It should by no means become a source of profit for an employee. If the government calculates and finds that it has become a source of profit, it can logically reduce it.”
He added that if an entitled officer is provided with a car, they must use that car wherever they go, whether to a ministry or a directorate. Under no circumstances can they use any other government vehicle. If this rule is enforced, car-related expenses in the revenue sector will significantly drop.
