Govt forms panel to shift fiscal year to April-March

The government has formed a committee to devise work procedures for the transition of the fiscal year from July-June to April-March.

Headed by the cabinet secretary, the five-member committee will determine the required changes to the Constitution, the General Clauses Act, 1897 and other aspects of the government’s financial management, according to a notification issued by the Cabinet Division on Sunday.

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The move comes a week after the cabinet decided to change the country’s fiscal year cycle to April 1-March 31, with the new cycle taking effect in FY2028-29. The move away from the July-June cycle is aimed at avoiding monsoon-related delays in vital infrastructure development.

To facilitate a smooth transition, the 2027-28 fiscal year will serve as a nine-month transitional year (July-March).

The move away from the July-June cycle is aimed at avoiding monsoon-related delays in vital infrastructure development

Currently, key infrastructure works continue into July and August, when heavy rains frequently cause project delays, compromise the quality of construction and lead to widespread public suffering.

Shifting the cycle to April-March will allow major infrastructure development activities to be completed before the monsoon season begins, according to the Cabinet Division. Other members of the committee include the Bangladesh Bank governor, finance secretary, legislative and parliamentary affairs secretary and the chairman of the National Board of Revenue.

The committee will begin work immediately.