Schools face spending curbs

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The Ministry of Education has imposed sweeping expenditure controls. including a freeze on unsigned capital project contracts and tighter oversight of new spending commitments amid the ongoing fuel crisis.

The measures are contained in Circular 62/2026, issued by Permanent Secretary for Education Navin Raj following broader government directives aimed at conserving fuel and reducing expenditure.

Under the new directives, no new capital project contracts may proceed without prior approval from the Ministry of Finance.

Any contracts that have not yet been signed have been frozen pending review, while projects that have not reached the contract award stage have been placed on hold.

The move signals tighter scrutiny of government spending as authorities seek to preserve fiscal stability during the current fuel supply challenges.

The circular also states that schools are strongly advised not to enter into new financial commitments, including agreements, memoranda of understanding and project obligations, without prior concurrence from the Ministry of Finance.

In addition, the creation of new positions and the filling of vacancies will now require approval from the Prime Minister, while all Job Evaluation Exercises have been deferred until further notice.