BSS
  24 Jan 2026, 12:21

Finance Division rolls out BIPs to fix spending, curb domestic debt

DHAKA, Jan 24, 2026 (BSS) - The Finance Division has initiated the introduction of effective Budget Implementation Plans (BIPs) for ministries to ease mounting pressure from the government's heavy domestic debt repayments, which are largely driven by weak coordination, inefficiencies in budget planning and monitoring, and unusually high expenditure concentrated in June.

According to officials, the government currently repays nearly Tk 1 lakh crore in domestic debt every year. Lower revenue collection during the early months of the fiscal year often compels the government to resort to domestic borrowing, intensifying fiscal stress, they said in a press release.

The initiative was discussed at a two-day workshop titled "Budget Implementation Plan", which began on Friday (January 23) at a hotel in Cox's Bazar.
 
The workshop was chaired by Additional Secretary (Budget) of the Finance Division and National Programme Director of SPFMS Dr Ziaul Abedin. Joint Secretary Mohammad Faruk-uz-Zaman delivered the welcome address.

Senior officials from 18 ministries participated in the workshop, organised under the scheme "Improving the Budget Process through Capacity Development of Budget Management Committees and Budget Working Groups" of the Strengthening Public Financial Management System (SPFMS) programme of the Finance Division.

Officials at the workshop said budget execution would now begin from the very start of the fiscal year, allowing for more effective, timely and outcome-oriented implementation while ensuring the proper use of public funds.

 
Speaking at the event, Additional Secretary Md Hasanul Matin said there is a direct link between reducing abnormal government expenditure in June and the introduction of effective Budget Implementation Plans. 
 
He stressed the importance of assessing whether budget allocations are being spent on priority and quality sectors.
 
 He noted that excessive spending at the end of the fiscal year increases borrowing needs, while disciplined and evenly phased expenditure can significantly reduce domestic debt pressure and restore fiscal discipline.
 
Dr Ziaul Abedin said improving operational efficiency is critical for effective budget execution. 
 
He pointed out that preparation of Budget Implementation Plans often consumes over the first quarter of the fiscal year, undermining their usefulness.
 
 To be effective, the BIP process must begin much earlier and be aligned with budget approval timelines, he added.
 
Ferdous Rawshan Ara said that although the size of the national budget has expanded significantly over the years, implementation capacity has not increased at the same pace.
 
 She described the BIP as a strategic framework that strengthens transparency, accountability and discipline in budget execution. 
 
Mostafa Kamal said effective Budget Implementation Plans are essential to sustaining the country's quality development trajectory and ensuring value for money in public spending.
 
The business session on the Significance of BIP for Effective Budget Execution was moderated by Mohammad Faruk-uz-Zaman, while Md Zakir Hossain, Deputy Secretary of the FD, delivered the presentation. 
 
The session highlighted that BIPs translate annual budget allocations into time-bound, activity-based implementation roadmaps.
 
 By linking budgets with procurement plans, cash flow projections and quarterly expenditure targets, BIPs help prevent early delays and year-end spending rushes.
 
 Participants noted that improved coordination among ministries and enhanced monitoring through systems such as iBAS++ would strengthen fiscal discipline, expenditure predictability and macro-fiscal stability.
 
A group session on "Experiences of BIP: Challenges and Way Forward" was moderated by Joint Secretary Md Nazrul Islam. Participants were divided into four groups to identify implementation challenges and propose solutions.
 
Group-1 identified delayed BIP issuance, system misalignment, capacity gaps, procedural bottlenecks and weak integration among APP, iBAS++, e-GP and related platforms as key obstacles. 
 
The group recommended timely issuance of BIPs, stronger system integration, realistic planning, improved training and clearer coding practices.
 
Group-2 highlighted capacity constraints, fragmented systems, frequent staff transfers, delayed project approvals, land acquisition challenges and slow procurement as major impediments. 
 
The group called for capacity building, realistic budgeting, simplified procedures and greater administrative and financial autonomy for ministries.
 
Group-3 focused on policy perspectives and practical considerations related to BIP implementation, emphasising discussion-based analysis and interactive engagement rather than detailed technical presentations.
 
Group-4 pointed to operational and system-related weaknesses in BIP entry and execution within iBAS++, including coding mismatches, weak linkage with procurement systems and delayed budget revisions.
 
 The group stressed accurate coding, regular monitoring, timely corrections and stronger coordination led by the Finance Division.