Tk72.60cr released for judges' car loans despite reform commission's proposals to scrap facility

The finance ministry last week released Tk72.60 crore in favour of the law ministry to facilitate interest-free loans for 242 members of the Bangladesh Judicial Service to purchase vehicles, according to sources familiar with the matter.

In early December last year, the Finance Division had approved the inclusion of Judicial Service members in the government scheme.

In a notification on 12 December, the Law and Justice Division stated that district judges, additional district judges, and joint district judges with 15 years of service are eligible for the loan.

Judges with at least one year remaining before retirement, as well as the secretary or senior secretary of the Law and Justice Division appointed from the Bangladesh Judicial Service, are also eligible.

However, those who have already received a car facility from the Department of Government Transport are ineligible to apply, and officials employed on lien or contract are excluded from the scheme.

Following the Finance Division's approval, loans were granted to 242 judges for vehicle purchases. The finance ministry has allocated Tk72.60 crore for these loans in the supplementary budget, in favour of the law ministry.

Under this policy, each officer receives Tk30 lakh to purchase a vehicle, along with Tk50,000 per month for maintenance.

According to a report by the Law and Justice Division, there are currently 315 district judges, 342 additional district judges, and 25 joint district judges with 15 years of service in the Bangladesh Judicial Service.

Of them, 440 judges use travel and expense-covered vehicles. This decision extends the car facility to all officers within the jurisdiction of the Bangladesh Judicial Service.

However, the Public Administration Reform Commission, formed by the interim government, has recommended discontinuing this loan in its report.

The commission highlighted that deputy secretaries receive loans to purchase vehicles, along with Tk50,000 per month for maintenance, while officials from other services outside the Secretariat do not have this facility.

To eliminate inequality among government officials and reduce government expenditure, the commission has recommended cancelling this system.

Due to low revenue mobilisation amid the economic slowdown, the government is implementing austerity measures to reduce expenditure, including a hold on vehicle purchases for government institutions or projects.

A senior Finance Division official said following the government changeover in August last year, officials from various divisions have been pressuring the government to grant benefits, with car loans for judicial service officials being one such decision.

"While the previous government had a policy to provide this loan facility across sectors in phases, it was meant to depend on the government's revenue. However, many decisions are now being made that conflict with the government's austerity policy," he added, wishing to remain anonymous.

In 2018, the public administration ministry introduced a policy for interest-free loans and car service monetisation for authorised government officials.

Initially, the loan was for officers promoted to the post of deputy secretary, with at least three years of service, starting from joint secretary to senior secretary, on the recommendation of the Superior Selection Board.

Officers from the armed forces and the Election Commission Secretariat were later included in the policy. However, this has led to dissatisfaction among officers from other cadres.