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Civil servant home loan initiative delayed

  • Published at 01:22 am January 6th, 2017
Civil servant home loan initiative delayed
A seven-member committee formed August last year is yet to submit a report on this, although it was supposed to submit its recommendations within a month. A Finance Ministry official said the Public Administration Division and the deputy commissioners have been urging Finance Division to expedite the process. In the last DC conference, the commissioners demanded a new ceiling of Tk50 lakh for construction and purchase of homes. The Cabinet Division forwarded the demand to the Finance Division, the official said. A second class government employee said the second, third and fourth classes have remained financially deprived compared to officers. The car and car maintenance facilities given to additional secretaries alone are Tk25 lakh and of Tk45,000 per month respectively. Currently, public servants can avail a maximum of Tk1.2 lakh loan at 10% interest for residential purposes. This should be equivalent to 36 months’ basic pay of a government employee but cannot be more than Tk1.2 lakh. According to Finance Division, there are currently 477,000 first class officers, 131,000 second class employees, 1.228 million third class and 267,000 fourth class. The seven-member committee for rationalization of the public servant home  loan held a meeting yesterday. The meeting decided to form two technical committees to find out ways of collecting fund and assess its impact on the government exchequer . Finance Ministry’s Senior secretary Mahbub Ahmed told the Dhaka Tribune: “We have formed a committee to give us recommendations about revising government employee home loans and that committee is now working on it.” Asked why the committee had failed its deadline, he said he would look into the matter. Last year Farashuddin Pay Commission recommended bank loans and government land facilities to meet housing problems of public servants. The Public Works Ministry has already sent a proposal of Tk500 crore project to the Planning Commission for providing loan to public servants to buy flats.