The government is moving to shift Bangladesh’s fiscal year from the current July-June cycle to April-March, aiming to reduce delays in development projects caused by the monsoon season. Finance Minister Amir Khosru Mahmud Chowdhury has instructed officials to prepare a proposal for the change, which will be reviewed by the Budget Wing before being presented to a cabinet committee, according to finance ministry sources.
The primary driver behind the proposed shift is the weather. The final three months of the current fiscal year, April to June, coincide with Bangladesh’s rainy season, which complicates infrastructure work. Officials note that in June, contractors often rush to complete projects solely to process bills, leading to poor quality and wasted public funds. Moving the fiscal year end to March would align the budget cycle with drier months, allowing for better planning and execution of development work.
According to the finance ministry, the proposed change is not limited to the development budget. The shift would require significant adjustments to revenue collection, tax assessments, VAT systems, government accounting, and budget preparation software. Officials stress that this involves a complex overhaul of banking and financial reporting systems, procurement schedules, and fund-release arrangements across all ministries.
The transition would be a major undertaking. The current fiscal year 2026-27, with a budget of Tk9.38 lakh crore, began on 1 July under the existing framework. An interim arrangement would be needed to close the old fiscal year and align the budget with the new timeframe, potentially causing a period where two fiscal years run concurrently during April, May, and June next year.
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Project directors and contractors will also need to adjust their timelines. Existing designs based on the July-June cycle would require revision, and the tendering process would shift to a different calendar. A similar attempt was made in 2010 but was not implemented.
Experts warn that changing the fiscal year alone will not eliminate waste. Fahmida Khatun, executive director of the Centre for Policy Dialogue, noted that while moving the end date away from the monsoon is a positive step, it must be accompanied by broader reforms in project approval and monitoring. Without changes to the tendering process and fund releases, the rushed spending at the end of the financial year could persist.
Despite these concerns, the government is pursuing the change alongside other measures. Digital dashboards are being introduced to track project progress using traffic-light signals, and reforms are being made to the appointment of project directors and construction rate schedules. Prime Minister Tarique Rahman is expected to inaugurate the new tracking system this month.