Finance Division rolls out BIPs to fix spending
Business Desk :
The Finance Division has initiated the introduction of effective Budget Implementation Plans (BIPs) for ministries to ease mounting pressure from the government’s heavy domestic debt repayments, which are largely driven by weak coordination, inefficiencies in budget planning and monitoring, and unusually high expenditure concentrated in June.
According to officials, the government currently repays nearly Tk 1 lakh crore in domestic debt every year. Lower revenue collection during the early months of the fiscal year often compels the government to resort to domestic borrowing, intensifying fiscal stress, reports BSS.
The initiative was discussed at a two-day workshop titled “Budget Implementation Plan”, which began on Friday at a hotel in Cox’s Bazar.
The workshop was chaired by Additional Secretary (Budget) of the Finance Division and National Programme Director of SPFMS Dr Ziaul Abedin. Joint Secretary Mohammad Faruk-uz-Zaman delivered the welcome address.
Senior officials from 18 ministries participated in the workshop, organised under the scheme “Improving the Budget Process through Capacity Development of Budget Management Committees and Budget Working Groups” of the Strengthening Public Financial Management System (SPFMS) programme of the Finance Division.
Officials at the workshop said budget execution would now begin from the very start of the fiscal year, allowing for more effective, timely and outcome-oriented implementation while ensuring the proper use of public funds.
Speaking at the event, Additional Secretary Md Hasanul Matin said there is a direct link between reducing abnormal government expenditure in June and the introduction of effective Budget Implementation Plans.
He stressed the importance of assessing whether budget allocations are being spent on priority and quality sectors.
Dr Ziaul Abedin said improving operational efficiency is critical for effective budget execution. He pointed out that preparation of Budget Implementation Plans often consumes over the first quarter of the fiscal year, undermining their usefulness.
To be effective, the BIP process must begin much earlier and be aligned with budget approval timelines, he added.
Ferdous Rawshan Ara said that although the size of the national budget has expanded significantly over the years, implementation capacity has not increased at the same pace.
She described the BIP as a strategic framework that strengthens transparency, accountability and discipline in budget execution. Mostafa Kamal said effective Budget Implementation Plans are essential to sustaining the country’s quality development trajectory and ensuring value for money in public spending.
