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.

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

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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).

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.

If the April-March period is used as the fiscal year, infrastructure development activities can be completed before the monsoon, said the Cabinet Division after the decision last week.

Other members of the committee include the Bangladesh Bank governor, finance secretary, legislative and parliamentary affairs secretary and the National Board of Revenue chairman.

The committee will take effect immediately.