Govt resets fiscal clock, Apr-Mar cycle from FY29

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 the Cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat.

Bangladesh’s fiscal year runs from July 1 to June 30. The government has decided to introduce the new fiscal year cycle to facilitate the completion of infrastructure development activities before the monsoon season.

Under the existing fiscal cycle, infrastructure development activities continue during July and August, when heavy monsoon rains often delay projects, affect the quality of work and cause widespread public suffering.

The Cabinet considered April-March as a more appropriate fiscal year, as it will 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 determine the next course of action.

Necessary amendments will have to be made to the Constitution of Bangladesh and the General Clauses Act, 1897, to bring change in the fiscal cycle.

Besides, technological changes will also be required in various systems involved in the government’s financial management.

The Cabinet decided to treat fiscal year 2027-28 as a transitional fiscal year, ending after nine months from July to March.

From fiscal year 2028-29, all government activities will be conducted according to the new April-March fiscal year cycle.