8 Recommendations of US State Department to Bring Transparency to Financial Sector of BD

The US State Department has outlined eight key recommendations to enhance transparency in Bangladesh’s financial sector, according to the Fiscal Transparency Report released on Friday.

The report notes that the country’s interim government has largely followed the budget framework established by the previous administration. While no major structural changes have been made, some reform measures have been implemented to improve transparency.

The recommendations include publishing year-end financial statements in a timely manner; preparing budget documents according to international standards; separately presenting executive office expenditures; providing a complete picture of government revenue and expenditure in the budget; ensuring the independence of the supreme audit authority in line with international standards and giving it full access to budget information; timely publication of audit reports with proposals and detailed information; disclosing key details of contracts related to natural resource extraction; and making government procurement information publicly available.

The report also points out that although the previous government had published budget proposals and enacted budgets online, year-end financial statements were not released on time.

While budget information was generally reliable, it did not fully meet international standards. Government debt and liabilities were disclosed, but executive branch expenditures were not presented separately.

Data on revenue and allocations from natural resources were available, but a complete picture of overall revenue and expenditure was lacking.

The US State Department further observed that the national audit office could not independently verify the full accounts under the caretaker government according to international standards.

Some summaries were published, but these were deemed insufficient. While legal standards were followed in issuing natural resource extraction contracts and licenses, information on government procurement remained limited.

However, the caretaker government has made the processes for natural resource extraction more transparent and open, and has suspended ongoing procurement practices initiated by the previous government.