Bypassing a key recommendation from the Public Administration Reform Commission to scrap interest-free car loans for senior officials, Bangladesh Civil Service (BCS) cadre officers have placed a fresh package of demands before the government ahead of the upcoming national election. Their demands include raising the current car loan facility from Tk 30 lakh to Tk 45 lakh.
At present, administration cadre officials from the rank of deputy secretary and above receive interest-free loans of up to Tk 30 lakh to purchase cars, along with a monthly allowance of Tk 50,000 for fuel, maintenance and a driver's salary. Relevant ministries confirm that a large number of officials are preparing to seek the increased loan facility, arguing that rising vehicle prices have made it difficult to buy cars without additional financial support.
Internal estimates suggest that if only deputy secretaries apply for the loan, the government will have to disburse roughly Tk 1,000 crore-an amount officials themselves admit could create embarrassment and resentment among other cadres. Currently, there are 1,659 deputy secretaries in the administration; if all of them took the loan, the state would need to allocate about Tk 747 crore for the loan disbursement alone. Over 10 years, the Tk 50,000 monthly maintenance allowance would add another Tk 248 crore. Extending the benefit to all eligible officials across the administration would push the cost significantly higher.
Despite the heavy financial implications, the Ministry of Public Administration has already decided to increase the facility to Tk 45 lakh and forwarded the proposal to the Finance Ministry for approval.
However, the Public Administration Reform Commission has strongly recommended abolishing the entire system. According to the commission, providing interest-free loans and a separate monthly allowance to Secretariat-based deputy secretaries creates inequality with officers outside the Secretariat who do not receive similar benefits. Abolishing the scheme, the commission argued, would reduce discrimination and help lower government expenditure.
The interest-free loan scheme was first introduced before the 2018 parliamentary elections. Since its rollout in 2017, around 2,800 officials have purchased personal vehicles using the facility. Yet multiple reports and investigations indicate misuse: several officials reportedly rely on other government vehicles instead of the car bought with the loan money, while some use the loan-funded car only for family purposes. In rare cases, there have been allegations of renting out these vehicles for profit. According to the rules, officials who already have a full-time government vehicle-such as those in field administration, dispatch or project roles-are supposed to receive only half the monthly maintenance allowance (Tk 25,000). But sources say this rule is routinely ignored by some officials, who still claim the full Tk 50,000.
Experts warn that expanding the facility at a time of economic strain would worsen inequality within the civil service and increase the burden on taxpayers. CPD Distinguished Fellow Prof Mustafizur Rahman said, "None of this money is a donation. It all comes from taxpayers or adds to future debt. Ensuring economic discipline in government spending should be our priority."
Public administration experts also expressed concern. Saiful Islam Mazumder questioned why taxpayers should subsidise luxury vehicles for officials, "If I buy a car, I should bear the cost-that should be the principle.
We make the law ourselves and implement it for ourselves. So how can we benefit ourselves?"
Dr Firoz Mia added that in a country struggling with severe economic challenges, such facilities are "unreasonable" and should be stopped, calling government-funded cars "a luxury."
