The revenue collection target for the coming fiscal year is Tk378,000 crore
The target for revenue collection for the fiscal year 2020-2021 is not realistic, said South Asian Network on Economic Modeling (Sanem), who is of the opinion that owing to the current crisis generated by the coronavirus pandemic, even meeting the revenue target set in the revised budget is rather daunting.
In his reaction to the proposed budget, Sanem Executive Director Prof Selim Raihan said: “I do not think that the huge revenue target that has been proposed for the next financial year is realistic.”
“If the revenue target is not met, how will the increased allocation for health, social protection and education be funded?” he questioned.
Raihan said targeting an 8.2% GDP growth in the next financial year raised the question of whether it had been assumed that economic activities would return to normalcy very soon, and whether or not economic growth would resume its previous trend.
“This assumption means economic activities will quickly pick up the normal pace and the economy will experience a V-shaped recovery,” he added.
Sanem also raised questions on the increase in allocation for the health sector.
“The current health crisis we are experiencing, along with the incompetence and lack of capability to handle this crisis, is an accumulated result of decades,” Raihan commented.
“I still believe that allocation for social protection as well as the health sector should have been increased to a greater extent,” he said.
“The budget deficit might increase in the coming days, especially if the revenue target is not met and cost pressure increases,” Raihan further added.
Finance Minister AHM Mustafa Kamal tabled a national budget of Tk568,000 crore for the 2020-21 fiscal year, the biggest in the country's history.
The revenue collection target for the coming fiscal year has been set at Tk378,000 crore.
Of the amount, the NBR has been tasked to realize a revenue collection target of Tk330,000 crore, the non-NBR revenue collection target being Tk15,000 crore, while non-tax revenue collection target is Tk33,000 crore.