Finance ministry puts brakes on proposal to halve govt officials' car allowance
Earlier proposal sought to halve the monthly car maintenance allowance for officials using the government’s interest-free vehicle loan scheme.
The Ministry of Finance has asked the public administration ministry not to take any action on its earlier proposal to halve the monthly car maintenance allowance for government officials eligible for interest-free vehicle loans.
A letter, signed by Finance Division Deputy Secretary Shihab Uddin Ahmad, was sent to the public administration secretary today (16 July).
Earlier on 9 July, the finance ministry proposed reducing the monthly vehicle maintenance allowance for eligible officials from Tk50,000 to Tk25,000.
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The proposal said the allowance could be reduced to help maintain macroeconomic stability, curb inflation, and ensure more efficient use of public resources.
It also stated that Prime Minister Tarique Rahman had approved the proposal.
However, in its latest letter, the finance ministry requested the public administration ministry not to proceed with any action based on that earlier letter.
Under the existing policy, officials of the administration cadre serving in posts from deputy secretary to additional secretary are entitled to an interest-free government loan of Tk30 lakh to purchase a vehicle.
The government also provides them with a monthly allowance of Tk50,000 to cover the maintenance costs of vehicles purchased under the scheme.
