The Policy Research Institute of Bangladesh has warned that the country’s economy is on a precarious path and will worsen without fundamental policy reforms. Ahsan H Mansur, the institute’s executive director, expressed concerns about the unsatisfactory performance in areas such as exports, imports, remittance, and revenue mobilization, which will negatively impact future growth. Given the current circumstances, achieving the targeted GDP growth of 7.5 percent in the upcoming fiscal year seems unrealistic. This shortfall will further widen the budget deficit. To increase revenue collection, experts recommend expanding the tax net and focusing on collecting taxes from the affluent class. They also stress the importance of reducing tax exemptions, implementing short-term VAT reforms, and acknowledging the expected revenue shortfall for the current fiscal year while planning the upcoming budget. Experts urge the government to address the financial sector’s instability and boost investor confidence to narrow the deficit in the financial account.
Bangladesh’s Economy Needs Urgent Reforms to Avert Deterioration: PRI
- Published On May 15, 2023
- 12:43 pm
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Economic Tag: Govt.
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