The independent think tank Centre for Policy Dialogue (CPD) has said the main challenge in the upcoming budget is to raise revenue collection to meet government spending.
CPD stated this at a press briefing on “The State of Bangladesh's Economy and Budget Challenges” at the Cirdap Auditorium on Tuesday morning.
The think tank said a credible program and all-out efforts will be required to accelerate revenue mobilization in the fiscal year 2019-20. This includes: implementing planned reforms, reaching out to expand the tax base, identifying new areas for revenue, enhancing administrative capacity, rationalizing fiscal incentives, and curbing tax evasion. It also said an action plan to mobilize revenue in FY20 should be attached to the forthcoming budget.
CPD Fellow Debapriya Bhattacharya said: “A cleft in macroeconomic stability surfaced in the last fiscal year because of a revenue shortfall, problems in the banking sector, and pressure on the exchange rate of the Taka against the Dollar. The government’s steps—aimed at addressing the problems of the banking sector—are yet to produce a positive outcome.”
CPD further said an independent commission for the banking sector should be constituted without further delay, fiscal incentive-based measures will not work for capital markets, and the commitment and competence of the Bangladesh Securities & Exchanges Commission is a prerequisite to strengthening the reform agenda.
