Govt unveils new 5-year plan to bolster fiscal governance

The Finance Division under the finance ministry has launched its third Public Financial Management (PFM) Reform Strategy, a five-year plan designed to shift fiscal governance from system-based reforms to outcome-driven accountability and service delivery.

For the first time, the plan mainstreams climate-smart PFM, gender-responsive budgeting, and sector-specific reforms in health, education, and social protection, reads a press statement issued by the division today.

The strategy, unveiled by Finance Adviser Salehuddin Ahmed, comes as the country grapples with rising public expenditure, climate pressures, and global economic volatility.

Speaking at the ceremony, he stressed that the framework is intended to strengthen transparency and ensure citizens receive tangible benefits from public spending.

The Finance Division states that the 2025-2030 roadmap sets out 15 reform pillars, ranging from fiscal sustainability and debt management to procurement, oversight, and digital transformation.

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Finance Secretary Md Khairuzzaman Mozumder described the strategy as the product of "sustained and collaborative efforts" across ministries, constitutional bodies, and development partners.

Comptroller and Auditor General Md Nurul Islam underscored the role of independent audit in ensuring fiscal discipline and citizen‑focused services.

Jean Pesme, World Bank's Division Director for Bangladesh and Bhutan, highlighted progress in reforms such as iBAS++ and pension digitalisation, which have enhanced oversight and credibility.

Yet, he cautioned that institutional capacity, fiscal management, and public debt remain pressing challenges.

Bangladesh's tax‑to‑GDP ratio is among the lowest in South Asia, while liabilities from state‑owned enterprises and contingent risks continue to expand, the Finance Division noted.

The new framework emphasises resilience through improved macro‑fiscal forecasting, integrated debt management, and transparent reporting of fiscal risks, it added.

The division expects the PFM Reform Strategy to position public finance as a cornerstone of economic governance, equity, and public trust as Bangladesh advances toward upper‑middle‑income status.

Its success will depend on sustained political commitment, stronger inter‑agency coordination, and investment in public sector capacity, it added.