The Cabinet on Monday decided to shift Bangladesh’s fiscal year from the existing July-June cycle to April-March from FY2028-29, with FY2027-28 to serve as a nine-month transition period.
The decision was taken at a Cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat.
Bangladesh’s fiscal year currently runs from July 1 to June 30. The government decided to introduce the new cycle to facilitate the completion of infrastructure development activities before the monsoon season.
Under the existing fiscal cycle, infrastructure development work continues through July and August, when heavy monsoon rains often delay projects, affect the quality of work and cause widespread public suffering.
The Cabinet said the April-March cycle would be more appropriate as it would allow infrastructure development activities to be completed before the monsoon.
A committee comprising representatives from the Cabinet Division, Bangladesh Bank, National Board of Revenue, Legislative and Parliamentary Affairs Division, Finance Division and other relevant stakeholders will work out the details of the transition.
Necessary amendments will have to be made to the Constitution and the General Clauses Act, 1897, to bring about the change in the fiscal year.
Technological changes will also be required in various systems involved in the government’s financial management.
The Cabinet decided to treat FY2027-28 as a transitional fiscal year, covering nine months from July to March.
From FY2028-29, all government activities will be conducted according to the new April-March fiscal year cycle.
