Bangladesh will shift its financial year from the current July-June cycle to April-March from fiscal 2028-29.

The 2027-28 fiscal year will instead run for nine months, from July to March, as a transition before the new cycle begins.

The decision came at a cabinet meeting on Monday at the Secretariat, the Cabinet Division said.

Bangladesh follows a July-June financial year at the moment, meaning infrastructure work often continues through the July-August monsoon. This can delay projects, affect quality and cause widespread public hardship, a statement said.

An April-March cycle would allow infrastructure development to be completed before the monsoon, it added.

A committee involving the Cabinet Division, Bangladesh Bank, National Board of Revenue, Legislative, and Finance divisions and other relevant stakeholders will determine the next steps.

The shift will require amendments to the Constitution and the General Clauses Act, 1897, as well as technical changes to government financial management systems.

The government will complete the nine-month transition year in March 2028 and begin all activities under the new April-March financial year from fiscal 2028-29.