Panel formed for fiscal year shift

Bangladesh is moving to align its fiscal year with the country’s development cycle in an effort to complete major infrastructure projects before the monsoon and reduce delays, construction risks and public disruption, with a government committee now tasked with preparing the transition framework.

The Cabinet Division issued a notification on Sunday forming a five-member committee to devise the procedures and identify the legal and administrative changes required to shift the fiscal year from the current July-June cycle to April-March.

The committee will be headed by the Cabinet Secretary and will examine amendments required to the Constitution, the General Clauses Act 1897 and other aspects of government financial management.

The move follows the Cabinet’s decision last week to introduce the April-March fiscal year from FY2028-29.

To facilitate the transition, FY2027-28 will be treated as a nine-month transitional fiscal year, running from July to March.

According to the Cabinet Division, changing the fiscal calendar will allow major infrastructure development activities to be planned and completed before the monsoon season, when heavy rainfall frequently disrupts construction.

At present, many key infrastructure projects continue into July and August, when intense monsoon rains can delay implementation, affect construction quality and cause widespread inconvenience to the public.

“ If the April-March period is used as the fiscal year, infrastructure development activities can be completed before the monsoon,” the Cabinet Division said after the decision last week.

The committee will also assess the broader implications of the change for government budgeting, revenue collection and financial management to ensure a smooth transition to the new fiscal calendar.

Other members of the committee are the Bangladesh Bank governor, finance secretary, legislative and parliamentary affairs secretary, and National Board of Revenue chairman.

The committee will come into effect immediately and is expected to recommend the necessary steps for implementing the new fiscal-year cycle.