Achievements as on June 30, 2026

Strengthened linkage between policy priorities and budget allocations
The budget process has gradually moved beyond incremental allocation and is now better linked with national development priorities, sectoral strategies and medium-term fiscal objectives. Through the active role of Budget Management Committees (BMCs) and Budget Working Groups (BWGs), ministries and divisions are increasingly encouraged to justify budget proposals in line with policy goals, expected outputs and service-delivery priorities. This has helped make the budget a stronger policy instrument rather than only an annual expenditure statement.

Medium-Term Budget Framework further institutionalized
The MTBF process has been strengthened through regular review of ministry-level resource ceilings and sectoral priorities. BMCs and BWGs now play a more structured role in preparing budget proposals within a medium-term perspective, which supports better predictability, fiscal discipline and continuity in public spending.

Budget Management Committees and Budget Working Groups made more functional
The scheme has focused on improving the effectiveness of BMCs and BWGs by assessing how they function, developing performance improvement measures and strengthening their role in budget preparation and execution. Revised Terms of Reference have helped clarify responsibilities, including policy-budget linkage, review of ceilings, prioritization of spending and monitoring of implementation. This has contributed to better internal ownership of the budget process within ministries and divisions.

Improved coordination between Finance Division and Planning Commission
Institutional coordination between the Finance Division and Planning Commission has improved, particularly in aligning the revenue budget, development budget and ADP formulation process. The move toward harmonizing ADP and operating budget timetables through a combined budget circular has helped reduce fragmentation between development and operating expenditures. This is important for improving budget realism and ensuring that projects are considered within available fiscal space.

ADP formulation increasingly aligned with MTBF ceilings
The ADP preparation process is now more closely linked with the resource ceilings issued through the budget process. This has helped discourage arbitrary inclusion of projects and has encouraged ministries to prioritize projects within realistic medium-term limits. As a result, project selection and allocation decisions are becoming more disciplined, predictable and consistent with macro-fiscal constraints.

New Budget and Accounts Classification System introduced
The introduction of the Budget and Accounts Classification System has improved the structure, comparability and transparency of budget and accounting information. BACS supports better alignment between budget preparation, budget execution, accounting and financial reporting. It has also helped Bangladesh move closer to international standards in public financial management by enabling more systematic coding of economic, functional, administrative and program-level information.

Climate-responsive budgeting integrated into the national budget process
Climate financing has been increasingly institutionalized within the budget framework. The scheme supported the finalization of the “Climate Financing for Sustainable Development: Budget Report 2025–26”, which was adopted after consultation with relevant ministries and divisions. This has strengthened the practice of identifying climate-related allocations and linking fiscal policy with long-term resilience and sustainable development objectives.

Gender-responsive budgeting further deepened
Gender-responsive budgeting has been strengthened through dedicated reporting, consultation and capacity-building initiatives. The Gender Budget Report 2025–26 workshop brought together representatives from 46 ministries, divisions, directorates and agencies, creating a wider platform for evidence-based dialogue on gender equality, women’s economic participation and inclusive public spending.

Budget preparation and execution increasingly digitized through iBAS++
The integration of budget preparation and execution functions in iBAS++ has improved transparency, speed and monitoring of public expenditure. iBAS++ supports budget preparation through both top-down and bottom-up approaches, captures budget requirements from field offices, matches them with policy-level resource distribution and allows different budget versions to be stored and finalized.

Timely budget distribution to budget holders and DDOs improved
Budget holders can now receive approved budgets online through iBAS++ immediately after budget approval, which has reduced dependence on manual communication and improved the speed of fund availability. The scheme has also supported measures to improve timely release and distribution of budget to field offices and DDOs, including awareness activities and directives for selected ministries and divisions.

Real-time expenditure tracking and monitoring strengthened
The use of iBAS++ reports has improved the capacity of budget holders to monitor expenditure, track releases and make budget execution decisions based on updated financial information. This has strengthened the shift from paper-based control to system-based financial monitoring, improving transparency and management oversight.

Capacity development delivered through flagship PFM training
The scheme has supported structured training and workshops for officials involved in budget preparation, MTBF, budget execution, public financial management rules and procedures. The Budget Circular-1 training conducted from 21 to 29 December 2025 covered 44 batches and 938 officials from 61 ministries and divisions, helping build a common understanding of budget formulation requirements and improving the capacity of BMC and BWG members.

Participatory and evidence-based budget consultation expanded
The scheme has created platforms for consultation among ministries, divisions, commissions, academics, development partners and field-level officials. The April 2025 (16.04.2025) budget formulation and structure revision workshop brought together officials from 60 ministries, divisions and commissions to discuss fiscal discipline, MTBF revision, sectoral priorities and resource alignment.

Financial control and fiscal discipline improved
By strengthening BMCs and BWGs, enforcing ceilings, digitizing budget distribution and improving monitoring through iBAS++, the scheme has contributed to stronger financial control. These reforms reduce the scope for unauthorized allocation changes, delayed fund release, weak expenditure monitoring and inefficient spending.

Citizen-oriented and inclusive budgeting strengthened
The scheme includes activities to strengthen citizen participation in the budget preparation process and publish a Citizen’s Budget immediately after the budget speech. This has helped make the budget more accessible to non-specialist audiences and has supported the broader PFM goal of transparency, accountability and service delivery. Citizens Budget (2026-2027) has been published.

Peer Review Guideline developed for assessing BMC and BWG performance
The Scheme has developed a structured Peer Review Guideline to assess the performance of Budget Management Committees of selected ministries and divisions. The guideline provides a practical framework for reviewing how effectively BMCs and BWGs align MTBF proposals with policy priorities, review and approve budget proposals, monitor implementation, resolve audit issues and strengthen institutional capacity. This has introduced a more systematic and evidence-based approach to assessing the quality of ministry-level budget management.

Performance Scorecard introduced as a reform tool
A Performance Scorecard has been prepared to assess the functionality and effectiveness of BMCs. It allows ministries and divisions to be reviewed against agreed criteria instead of relying only on narrative reporting.

Inter-ministerial peer review institutionalized among selected MDAs
The Scheme has successfully introduced inter-ministerial peer review as a learning and accountability mechanism. Under DLR 2.2, 15 percent of BMCs participated in inter-ministerial peer reviews, covering 10 major high-spending ministries and divisions. These included MoPME, SHED, RTHD, Bridges Division, LGD, RDCD, MoWR, MoA, HSD and MEFWD.

Peer review strengthened transparency and accountability in budget management
By introducing a guideline, scorecard and inter-ministerial review process, the Scheme has created a more transparent mechanism for assessing the performance of BMCs and BWGs. Ministries are now reviewed against clear criteria, and their strengths and weaknesses can be identified more objectively. This has helped improve accountability in budget preparation, approval, monitoring and execution.