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Education, health, agriculture buildings exempted from spending curbs

Published : Tuesday, 22 September, 2026 at 7:24 PM
Observer online report
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The government has relaxed restrictions on construction of buildings under the education, health and agriculture ministries as part of measures to reduce public spending in the current fiscal year.

Under the revised decision issued on Tuesday, construction of new residential, non-residential or other buildings will remain suspended except for facilities related to the education, health and agriculture ministries.

The Finance Ministry had issued a circular on July 8 imposing restrictions on various government expenditures, including the construction of new buildings.

The latest decision provides exemptions for construction projects under the three ministries.

The existing provision allowing the completion of ongoing construction projects that are at least 70 per cent complete also remains unchanged. Such projects will continue to receive funding subject to approval from the Finance Division.

The government had also suspended spending from allocations for land acquisition under the earlier circular.

Under the revised decision, a government agency seeking land acquisition will have to obtain certification from the relevant ministry or division that funds have been allocated for the purpose based on the demand of the deputy commissioner.

Once the deputy commissioner’s preliminary estimate is received, the funds will be released promptly.

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