Despite progress, Bangladesh still short of minimum standard: US Fiscal Transparency Report

Although Bangladesh made significant progress, the country fell short of minimum standards of fiscal transparency, the US Department of State says in its 2022 Fiscal Transparency Report.  

Bangladesh was listed among 27 countries, which made significant progress towards the minimum standard of fiscal transparency.

"A determination of 'significant progress' indicates a government satisfactorily addressed a key deficiency in meeting the minimum requirements of fiscal transparency during the review period," said the report, which assessed fiscal transparency of governments from 1 January – 31 December, 2021.

According to the latest report, published on Friday, during the review period Bangladesh made significant progress by publishing its end-of-year report within a reasonable period.  

Of the 141 countries (and the Palestinian Authority) evaluated, a total of 72 met minimum requirements of fiscal transparency while the remaining 69 countries did not.

In South Asia, India, Nepal and Sri Lanka met the minimum requirements of fiscal transparency while Afghanistan, Pakistan, Maldives and Myanmar did not.

The report said that Bangladesh also made its executive budget proposal and enacted a budget widely and easily accessible to the public, and information on debt obligations were publicly available.  

Budget documents prepared by the authorities concerned provided a reasonably complete picture of the government's planned expenditures and revenue streams, including natural resource revenues, adds the report.  

However, the US state department report said the supreme audit institution – office of the Comptroller and Auditor General of Bangladesh – failed to meet international standards.

"Bangladesh's supreme audit institution reviewed the government's accounts, but its reports did not contain substantive findings and were not made publicly available within a reasonable period and it also did not meet international standards of independence," read the report.  

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. Basic information on natural resource extraction awards was not consistently made publicly available.

The report made four recommendations to improve Bangladesh's fiscal transparency: 

• Preparing budget documents according to internationally accepted principles

• Ensuring the supreme audit institution meets international standards of independence and has sufficient resources

• Publishing timely audit reports that contain substantive findings, recommendations, and narratives

• Making basic information about natural resource extraction awards publicly and consistently available

Since 2008, in consultation with other relevant US agencies, the US Department of State has been conducting fiscal transparency assessments of governments that receive US foreign assistance.