Early details of the proposed 2026 federal budget indicate significant cuts to allocations for vehicles and sundry expenses as the government struggles with persistent revenue shortfalls and rising debt servicing costs.
Officials in the Budget Office say the move is part of a broader cost-containment strategy designed to redirect scarce resources toward priority sectors such as security, education, healthcare, and infrastructure. Under the new framework, ministries and agencies will face stricter approval processes for capital purchases, including official vehicles.
Despite the cuts, analysts note that spending pressures remain intense, with fuel subsidy reforms, exchange rate volatility, and weak oil receipts continuing to strain public finances. Economists argue that while trimming overhead costs is a positive signal, deeper structural reforms are needed to boost non-oil revenue and improve fiscal discipline.
Civil society groups have welcomed the proposed reductions but insist that transparency in budget implementation will be critical to ensure savings are not lost to inefficiency. As the budget heads to the National Assembly for consideration, lawmakers are expected to scrutinise spending priorities closely amid growing public concern over economic hardship.
