The finance ministry has asked ministries and divisions to take more austerity measures and ensure transparency during public procurement as the government has placed utmost priority in health, social safety net and economic management to tackle the coronavirus pandemic.

The ministry made the request in a circular on May 16 amid slow growth of revenue collection as the second wave of the virus halted the recovery of business and economic activities.

In the circular, the finance division instructed all ministries and divisions to follow the Public Procurement Act and rules related to the law properly and transparently in case of government purchases.

This has been the latest initiative of the finance ministry to cut unnecessary expenses, including foreign tours and the purchase of luxurious cars for senior government officials, since the outbreak of the coronavirus in March last year.

The government has been facing pressure on public expenditure to tackle the contagion, strengthen the weak health system, support the livelihoods of millions of people, and keep businesses afloat reeling from the pandemic. 

The latest notice came as tax collection remains far behind the target for 2021-22.

The National Board of Revenue (NBR) registered 7.3 per cent growth year-on-year to Tk 178,260 crore in the July-March period of the current fiscal year.

The agency has to earn Tk 122,000 crore during the remaining three months of the fiscal year to hit the revised target of Tk 300,000 crore.

Because of the sluggish revenue collection growth, the government is expected to keep the target unchanged for the NBR in the next fiscal year.

The collection declined 2.26 per cent in 2019-20, the first negative growth in the history of Bangladesh after economic activities slumped.

The government needs funds for its massive vaccination plan in the next fiscal year. Primarily, it has been estimated that it may need a walloping Tk 20,000 crore to inoculate the whole population.

It has to feed both the old poor and the new poor. The government may set aside a sizeable amount of money for social protection.

The government has directed the NBR to keep all of its offices open to collect taxes amid ongoing restrictions.