US flags fiscal transparency gaps in Bangladesh

Bangladesh suffers from a lack of transparency in government revenue and expenditures, the US Department of State said in a report released on September 19.

In its 2025 Fiscal Transparency Report, the US State Department said Bangladesh was among 69 countries that did not meet the minimum requirements for fiscal transparency in 2025.

In South Asia, Pakistan and the Maldives also failed to meet the minimum requirements for fiscal transparency, according to the report, which reviewed 139 countries.

The US report said 71 governments met the minimum fiscal transparency requirements.

It suggested Bangladesh make its end-of-year report publicly available within a reasonable period. The country could also prepare budget documents according to internationally accepted principles, said the Fiscal Transparency Report, which reviews whether foreign governments meet minimum fiscal transparency standards.

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The US Department of State said a non-political interim government replaced the administration previously responsible for budget creation. The new administration generally followed the budget recommendations and implementation procedures of the prior one, while also initiating significant reforms to improve fiscal transparency.

The report said the prior government made its executive budget proposal and enacted budget publicly available, including online.

"It did not make its end-of-year report publicly available within a reasonable period."

The report, however, noted that budget information was considered generally reliable, although documents were not prepared according to internationally accepted principles. Information on debt obligations was publicly available.

"Budget documents provided a reasonably complete picture of the government's planned expenditures and revenue, including natural resource revenues. However, the government did not break down expenditures to support executive offices, nor did the budget provide a substantially complete picture of revenues and expenditures."

The report said that due to the change in government, Bangladesh's supreme audit institution did not review the government's accounts, but it released some summarised findings that were made publicly available within a reasonable period.

"The supreme audit institution did not meet international standards of independence."

The US State Department also said the government specified in law or regulation—and appeared to follow in practice—the criteria and procedures for awarding natural resource extraction contracts and licences, and provided limited information on public procurement contracts.

The interim government moved to make all procurements for natural resource extraction fully open and transparent, suspending all previous or ongoing direct negotiations led by the prior administration, it said.

To improve transparency in fiscal areas, the report recommended breaking down expenditures to support executive offices in the budget, and providing a substantially complete picture of the government's revenues and expenditures.

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It also urged the government to ensure the supreme audit institution meets international standards of independence and has sufficient resources to obtain timely and direct access to the entire annual executed budget.

The US State Department further suggested publishing timely audit reports that contain substantive findings, recommendations, and narratives, and making basic information on natural resource extraction awards publicly available.