The government aims to collect total revenue equivalent to 11.2% of GDP by the end of the fiscal year 2025-26, as outlined in the Medium Term Macroeconomic Policy Statement. While maintaining an expansionary fiscal stance, the government seeks to strike a balance between economic growth, poverty reduction, and improved social outcomes.
Despite efforts to improve revenue collection, the country faces challenges in increasing the tax-GDP ratio, mainly due to rapid GDP growth. Initiatives have been undertaken to gradually enhance revenue collection by boosting the tax volume and the number of taxpayers.
Additionally, the government emphasizes public expenditure policies aimed at stimulating private investment, creating employment opportunities, supporting low-income populations, and reducing poverty while ensuring inclusive development. The government’s fiscal management strategies include increased public expenditure, financial reforms, and the adoption of digital systems to enhance budget management and transparency. The medium-term goal is to increase public expenditure to around 16.2% of GDP by 2026.
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