[{"bbox": [97, 152, 1164, 206], "category": "Text", "text": "components. The Public Expenditure and Financial Accountability (PEFA) assessment, published in 2023 but covering 2021 and earlier, led to revisions of the PFM Action Plan 2024-2028.²"}, {"bbox": [97, 218, 1164, 405], "category": "Text", "text": "Additionally, OCAG has established a Strategic Plan for 2021-25, featuring performance indicators and milestones. This Action aligns with OCAG's Strategic Plan, aiming to enhance SAI credibility, resource allocation, policy decisions, and overall public financial management. It supports GoB's long-term goals expressed in Vision 2041, the Eighth Five-Year Plan, and PFM sector policy objectives. After 2025, a follow-up Strategic Plan is foreseen, after an assessment. The latest OCAG Quality Control System report, based on the principles and requirements of International Standards of Supreme Audit Institutions (ISSAI) 140, dates from October 2021. This has a provision for an independent review once every five years, subject to resources.³"}, {"bbox": [97, 417, 1164, 524], "category": "Text", "text": "This Action represents a crucial aspect of the EU's policy dialogue with the Government on budget transparency and fight against corruption, directly reinforcing ongoing EU support in education, social protection, and PFM sectors. By positioning the EU as a main partner, it aims to assist Bangladesh in tackling urgent development challenges and laying the groundwork for its LDC graduation."}, {"bbox": [97, 535, 1164, 616], "category": "Text", "text": "The Action will contribute to EU's Action Plan on Gender Equality and Women's Empowerment in External Relations 2020-2025 (GAP III), especially to its Thematic Area of Engagement “Addressing the challenges and harnessing the opportunities offered by the green transition and the digital transformation”."}, {"bbox": [97, 627, 1164, 918], "category": "Text", "text": "From mid-July 2024, Bangladesh experienced political instability and unrest triggered by student protests against a government job quota system. The EU expressed its concerns over violence and loss of life in the context of these protests and called for a peaceful solution, respect for human rights and a thorough investigation. Prime Minister Sheikh Hasina resigned on 5 August. On 8 August, President Shahabuddin swore in an interim government which is tasked with steering the country through a transition that prepares the ground for democratic elections and ensures accountability for the deaths and violence that have occurred. The interim government is led by Nobel Peace Prize laureate Muhammad Yunus who has the title of Chief Adviser. On 8 August the High Representative issued a statement saying that the “EU looks forward to engaging with the new administration and to supporting this critical transition which should be part of a peaceful and inclusive process underpinned by good governance, democratic values and respect for human rights.” The EU has closely followed the situation and the actions of the authorities in the context of this crisis and will continue to do so."}, {"bbox": [85, 980, 340, 1010], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [97, 1038, 315, 1065], "category": "Text", "text": "Short problem analysis:"}, {"bbox": [97, 1077, 1164, 1211], "category": "Text", "text": "Successful development depends in large part on the efficiency, integrity and effectiveness with which a state raises, manages and expends public resources. OCAG still has considerable progress to make and receives limited support from the Government of Bangladesh, despite the importance of its mandate for good governance and enhanced revenue mobilisation. Most notably, follow-up after audit reports is limited to non-existent. Providing OCAG with a partnership with an EU Member State will bolster its position."}, {"bbox": [97, 1222, 1164, 1329], "category": "Text", "text": "Considering its developmental status (anticipating promotion from LDC status in 2026), Bangladesh faces challenges with a low tax-to-GDP ratio, currently significantly below 10%. This situation is compounded by high human needs and a notable level of corruption. Transparency International ranks Bangladesh's Corruption Perceptions Index (CPI) at 24 out of 100, where 100 represents the best and 0 the worst."}, {"bbox": [97, 1341, 1156, 1474], "category": "Text", "text": "Accountability concerning public finances still falls short of international standards. While external auditing encompasses all GoB entities, its primary focus is on ensuring compliance. However, reports on the central government's budgetary financial statements are submitted over nine months after the period ends, contributing to a significant backlog of audit reports (refer to the *Public Expenditure and Financial Accounting Assessment 2021*. In 2021, the indicators PI-30 \"*External audit*\" scored only a D+ while PI-31 \"*Legislative scrutiny of audit reports*\""}, {"bbox": [85, 1548, 587, 1574], "category": "Footnote", "text": "² For the PEFA (2023), see https://www.pefa.org/node/5087"}, {"bbox": [85, 1596, 1131, 1623], "category": "Footnote", "text": "³ See paragraph 8:05 on page 12 in https://cag.org.bd/storage/app/uploads/public/639/568/020/6395680203c2c840005205.pdf"}, {"bbox": [1038, 1682, 1143, 1706], "category": "Page-footer", "text": "Page 5 of 13"}]