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The government has ordered a suspension on the purchase of all types of motor vehicles, watercraft and aircraft under both the development and operational budgets for the fiscal year 2026-27.
It has also temporarily halted government-funded foreign travel and interest-free special loans for government officials to buy vehicles.
The directives were issued in a circular by the Finance Division on Wednesday (July 8).
According to the circular, the measures aim to ensure the efficient use of limited public resources, bring inflation to a tolerable level and maintain macroeconomic stability.
The decision will apply to all government ministries and agencies, autonomous bodies, statutory organisations, state-owned enterprises, public sector corporations and state-owned financial institutions.
The circular states that no budget allocation under the development or operational budget may be used to purchase motor vehicles, watercraft or aircraft during the current fiscal year. However, the restriction will not apply to the replacement of vehicles that are more than 10 years old.
Newly established government institutions may purchase vehicles only with prior approval from the Finance Division.
A new condition has also been introduced requiring that, except for ambulances and vehicles used for security purposes, all newly purchased or replacement jeeps and cars must be fully electric vehicles (FEVs).
The government has also suspended the interest-free special loan facility for public servants to purchase vehicles.
In addition, all government-funded overseas training programmes, seminars, symposiums and workshops have been suspended. However, officials may still participate in programmes financed by foreign governments, international organisations or development partners.
The circular also allows foreign travel for Master’s and PhD studies under scholarships and fellowships provided by development partners, universities or foreign governments.
The overseas component of mandatory and basic training conducted by training institutes may continue if organised at appropriate universities or institutions abroad.
For pre-shipment inspections (PSI) or factory acceptance tests (FAT), overseas travel will be considered only for technical experts or officials in cases involving complex equipment or where PSI is mandatory. The Finance Ministry has instructed authorities to give priority to internationally accredited testing agencies wherever possible.
The circular further states that no new residential, non-residential or other buildings may be constructed under the operational budget during the current fiscal year.
However, projects that are at least 70% complete may be finished with approval from the Finance Division.