The government has decided to change Bangladesh’s fiscal year from the existing July–June cycle to April–March, aiming to improve the implementation of infrastructure development projects and reduce disruptions caused by the monsoon season.

The decision was taken at a Cabinet meeting held at the Secretariat on Monday, chaired by Prime Minister Tarique Rahman.

Under the new arrangement, the fiscal year will run from April 1 to March 31. However, the 2027–28 fiscal year will be treated as a transitional year, covering nine months from July 2027 to March 2028. The new April–March fiscal year will officially come into effect from FY2028–29.

According to a Cabinet Division press release, the existing July–June fiscal year means that infrastructure development activities often continue during July and August, when heavy monsoon rains hamper construction work. This can prolong projects, affect the quality of work and cause significant public suffering.

The government believes that shifting the fiscal year to April–March will allow major infrastructure projects to be completed before the monsoon season begins.

A committee comprising representatives from the Cabinet Division, Bangladesh Bank, National Board of Revenue (NBR), Legislative and Parliamentary Affairs Division, Finance Division and other relevant stakeholders will determine the necessary steps for implementing the change.

The government will also need to make necessary amendments to the Constitution and the General Clauses Act, 1897, as well as introduce technological changes to various government financial management systems.

The committee will coordinate the transition and prepare a detailed roadmap for implementing the new fiscal-year structure.