The US State Department’s 2025 Fiscal Transparency Report presents both a clear diagnosis and a roadmap for improving financial transparency in Bangladesh. While acknowledging reform efforts already under way, the report insists that much remains to be done.

The United States has issued eight key recommendations to bolster financial transparency in Bangladesh, following critical findings in its 2025 Fiscal Transparency Report released by the US State Department. While the report praised some steps taken by the country’s interim government, it noted that Bangladesh, along with several peer nations, still falls short of international benchmarks for fiscal openness.

What the Report Found

The 2025 report examined 140 countries and entities, finding that 71 met the minimum standards for fiscal transparency, while 69 – including Bangladesh – did not. Among those 69, 26 showed significant progress toward compliance.

In the case of Bangladesh, the report said the interim government has largely retained the budget framework and procedures of the previous administration. However, it has begun initiating reforms with the goal of improving openness in public finances.

Some positive actions, the report noted, include:

• The prior government had made its executive budget proposal and enacted budget publicly available, including online.
• Debt obligations are publicly disclosed.
• The interim government has moved to ensure transparency in natural resource extraction, pausing all prior direct procurement negotiations initiated by the former government.

Where Bangladesh Falls Short

Despite these steps, the report identifies several deficiencies:

• Delayed end-of-year reporting. Bangladesh did not make its end-of-year financial report publicly available within what the US considers a reasonable time.
• Budget documents not meeting international standards. While documents were seen as generally reliable, they did not conform to internationally accepted principles.
• Incomplete breakdowns. Expenditures tied to the executive offices are not separately detailed, and the budget fails to present a fully complete picture of revenues and expenditures.
• Audit institution not fully independent. The Supreme Audit Institution (SAI) lacks the full level of independence required under international norms. Additionally, it has not always had access to the entire annual executed budget, and some audits are delayed or only summarised.
• Limited transparency in procurement and natural resource contracts. Key information – such as contracts and licences related to natural resource extraction – are disclosed only to a limited extent. Similarly, public procurement contracts are not always made visible.

The Eight Recommendations

To address these gaps, the US report lays out eight recommendations for Bangladesh. They are:

1. Publish the end-of-year (year-end) financial report within a reasonable period.
2. Prepare budget documents according to internationally accepted or recognised standards.
3. Provide detailed breakdowns of expenditures supporting executive offices – in other words, show how much is being spent directly by the executive branch.
4. Ensure the budget presents a substantially complete picture of both revenues and expenditures.
5. Ensure the Supreme Audit Institution (SAI) meets international standards of independence, is well-resourced, and has timely and direct access to the annual executed budget.
6. Publish audit reports in a timely manner – with substantive findings, recommendations, and narrative detail.
7. Disclose basic or key information on contracts and licences for natural resource extraction.
8. Make information on public procurement contracts publicly available.

Why It Matters

The report underscores that fiscal transparency is not just a technical issue – it is essential for accountability, economic confidence, and growth. When citizens, investors, and civil society can see how revenues are raised and spent, trust improves, the risk of mismanagement or corruption declines, and policy outcomes tend to be more sustainable.

For Bangladesh, meeting international transparency standards is increasingly important as it seeks to attract foreign investment, strengthen its public institutions, and uphold good governance. Experts in Bangladesh have broadly welcomed the US recommendations, saying they address known weak spots in the country’s public finance system – especially around audits, procurement, and disclosure.

Next Steps and Challenges

Implementing the recommendations will require legislative, administrative, and institutional changes:

• The legal framework may need to be updated to guarantee independence and capacity for the audit institution.
• Administrative reforms are necessary to ensure timely publication of reports, better data practices, and full disclosure of procurement and contracts.
• Some reforms – such as breaking down executive expenditures or aligning budget documents with global standards – may require additional technical capacity and resources.

There is also the question of political will and continuity. While the interim government has followed many of the prior framework’s practices, ensuring that reforms survive beyond the current transitional period will be critical. Ensuring transparency in procurement and natural resource extraction is especially sensitive and may face resistance from entrenched interests.

The US State Department’s 2025 Fiscal Transparency Report presents both a clear diagnosis and a roadmap for improving financial transparency in Bangladesh.

While acknowledging reform efforts already under way, the report insists that much remains to be done. With international norms as a guide, implementing the eight recommendations could help Bangladesh build greater public trust, strengthen its institutions, and raise its standing in the global community. Whether the country acts on these suggestions – and how quickly – will be watched closely by domestic stakeholders, investors, and foreign partners alike.