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The government has decided to bring a significant change to the country’s fiscal year timeline. Instead of the current July 1 to June 30 period, the fiscal year will now be set from April 1 to March 31.
This decision was made at a cabinet meeting on Monday (August 17). Before the new system comes into full effect, the 2027-28 fiscal year will be considered an interim or transitional fiscal year. That fiscal year will conclude in nine months, from July to March. Subsequently, from the 2028-29 fiscal year, the new April-March timeline for the fiscal year will commence.
During the meeting, it was stated that currently, Bangladesh calculates its fiscal year from July 1 to June 30 of the following year. Due to this schedule, the monsoon season falls at the beginning of the fiscal year. As a result, various infrastructure development projects continue throughout the monsoon months, including July and August.
Operating development work during the monsoon season increases project implementation time, risks compromising the quality of work, and heightens public suffering. The government believes that by shifting the fiscal year to April-March, a significant portion of infrastructure development work can be completed before the onset of the monsoon.
To determine the process of changing the fiscal year, a committee comprising the Cabinet Division, Bangladesh Bank, National Board of Revenue (NBR), Legislative Division, Finance Division, and other relevant stakeholders will be formed. This committee will determine the subsequent course of action for implementing the change.
This will necessitate essential amendments to the Constitution and the General Clauses Act, 1897. Furthermore, with the change in the fiscal year timeline, necessary modifications must also be made to various software and technology-dependent systems related to the government’s financial management.
According to the government’s plan, the 2027-28 fiscal year will serve as the transitional phase. After concluding that fiscal year in nine months, the government’s budget, financial management, and related activities will adhere to the April-March timeline starting from the 2028-29 fiscal year.
The government states that the introduction of the new fiscal year schedule will significantly reduce the existing mismatch between the monsoon season and the implementation timeline of development projects. This is expected to enhance both the pace and quality of project implementation, while also alleviating public suffering.