Govt drops plan to halve vehicle maintenance allowance for senior officials

The government has decided not to proceed with its earlier proposal to halve the monthly vehicle maintenance allowance for senior public officials from Tk 50,000 to Tk 25,000.

The allowance of Tk 50,000 will remain unchanged for officials from the rank of Deputy Secretary and above. The benefit also applies to officials of the judiciary, the Election Commission and the armed forces.

The decision came after nearly a week of correspondence between the Finance Division and the Ministry of Public Administration over the proposed cut, which reportedly triggered dissatisfaction among many officials.

On Thursday afternoon, the Finance Division sent a letter to the Ministry of Public Administration asking it not to take any further action on the proposal made on July 9. As a result, the existing monthly vehicle maintenance allowance of Tk 50,000 will continue.

An inter-ministerial meeting involving the Armed Forces Division, the Election Commission, the Judicial Service and other stakeholders, scheduled for Thursday afternoon to discuss the issue, was also postponed, according to officials.

Earlier, on July 9, the government abolished the interest-free vehicle loan facility under which eligible public officials received Tk 3 crore in interest-free loans to purchase vehicles. On July 13, the Finance Division asked the Ministry of Public Administration to examine the possibility of reducing the monthly maintenance allowance to Tk 25,000.

In its letter, the Finance Division said the proposal was intended to ensure prudent use of limited public resources, contain inflation and maintain macroeconomic stability. It argued that there was scope to rationalise the financial benefits provided to officials who had received interest-free vehicle loans while continuing to enjoy the monthly maintenance allowance.