Government Officials Retain Tk50,000 Vehicle Allowance Amid Cost-Cutting Efforts
High-ranking government officials will continue to receive a monthly vehicle maintenance allowance of Tk50,000, after a proposal to halve the benefit was withdrawn. The existing allowance will remain in place for officials ranging from Deputy Secretary to the highest levels.
This allowance is provided not only to civil administration officials but also to members of the judiciary, the Election Commission, and the armed forces. The debate over this issue led to a week-long exchange of letters between the Finance Division and the Ministry of Public Administration.
On July 9, the Ministry of Finance proposed reducing the allowance to Tk25,000 per month. However, on Thursday afternoon, the Finance Division sent a new letter to the Ministry of Public Administration. This letter asked them not to proceed with the reduction.
As a result, the monthly vehicle maintenance allowance will stay at Tk50,000. An inter-ministerial meeting, which was scheduled for Thursday afternoon, has also been postponed. This meeting was meant to include representatives from the Armed Forces Division, the Election Commission, and the Judicial Service.
Until recently, eligible government officials could receive interest-free loans of Tk3 million to buy vehicles. The government ended this loan facility on July 9. Officials who used these loans to buy cars also receive the Tk50,000 monthly maintenance allowance.
On July 13, the Finance Division had written to the Ministry of Public Administration. It asked them to reduce the allowance to Tk25,000. The Finance Division left it to the Ministry of Public Administration to decide how this reduction would be implemented.
In its earlier letter, the Finance Division requested an assessment of reducing the allowance. It highlighted the need to use limited resources wisely, control inflation, and maintain a stable economy. It suggested there was room to cut financial benefits for officials who receive both vehicle loans and maintenance allowances.
