According to a distinguished member of the Centre for Policy Dialogue (CPD), Bangladesh is having trouble finding fiscal resources to address the country’s present economic issues because of the country’s bad fiscal status.
There are also internal factors contributing to the nation’s economic issues. It is noted that there haven’t been any fiscal reforms in years. The revenue share of the GDP hasn’t increased by more than 10% as a result.
The economist claims that the value-added tax, an indirect tax, is the basis for all tax revenue. As a result, low-income groups pay the same amount in taxes as high-income groups do. An understanding of transitional policy is required in this case. Additionally, it must be created through a consultative and inclusive process.
Six problems were cited by the finance minister in the budget address for the current fiscal year. Four of them grew more severe in the first two months of the fiscal year, which led to a subsequent decline in the economy. High economic growth is not facilitated by the government’s present fiscal policy and spending capabilities stated by the economist.
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