The government aims to collect total revenue amounting to 11.2 percent of GDP by the end of the 2025-26 fiscal, according to the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division under the Finance Ministry. It said that Bangladesh has consistently maintained an expansionary fiscal stance keeping a moderate budget deficit—usually around 5 percent of GDP—to foster economic growth, reduce poverty, and improve social outcomes. However, the tax-GDP ratio in Bangladesh is significantly lower than its peers and hence, the government has taken several initiatives to improve revenue collection. Yet, it said, the fast pace of GDP growth has made it challenging to increase the ratio. No tax fair, NBR will organise tax support service to smooth returns submission The measures that have been undertaken are expected to gradually improve revenue collection by increasing both the tax volume and the number of taxpayers. The Statement said that the foremost objectives of the public expenditure policy are to stimulate private investment through building infrastructures and improving the business climate, creating employment opportunities, supporting low-income population through social safety net programs, and reducing poverty through ensuring efficient redistribution of wealth and thus ensuring inclusive development. With the advent of the Covid-19 outbreak, the government started to focus on saving lives while keeping the living standards from falling. To do this, it mentioned, the Government emphasised on retaining jobs, providing income support, keeping supply chains active, reviving the rural economy, and ensuring food supply. Public pension is considered tax-free, notification soon: Finance Ministry For this, the government increased spending and implemented comprehensive recovery programs consisting of twenty-eight stimulus packages. The stimulus efforts worked well and as a result the economy returned to a high growth trajectory fast while other countries continued to struggle. However, the Russia-Ukraine war has again posed considerable risks and to mitigate the risks the Government has been pursuing a policy to rationalise public expenditure to stimulate economic growth by inducing domestic productivity growth. While managing the economy to maximise welfare and development, the government is expected to maintain a budget deficit of around 5 percent of GDP over the medium term. Historically, the size of public expenditure has been low relative to GDP in Bangladesh because of various limitations in the process of revenue collection and budget implementation. Land Development Tax Bill 2023 passed in JS To improve the situation, the government has undertaken certain strategies to increase public expenditure. The target of increasing public expenditure has been set to around 16.2 percent of GDP in FY 2025-26. Moreover, the government is pursuing the Public Financial Management (PFM) reforms process to achieve this target. To improve overall public service delivery, financial control of budget allocations, real-time monitoring of budget execution, and integration of recurrent and capital spending, implementation of the PFM Action Plan (2018-23) is ongoing, and revised PFM Reform Action Plan (2024-2028) has recently been formulated. Under the PFM reforms, pension automation and E-challan automation systems have been introduced with the help of iBAS++ software. This system continues to play a significant role in simplifying the budget management process. At the same time, all beneficiary programs are being brought under the Government to Person (G2P) payment system with the help of the iBAS++ software, which brings greater transparency in government expenditure management. In addition, all government allocations from government institutions as well as all semi-government, autonomous, and state-owned enterprises, are being brought under the Treasury Single Account (TSA) through the iBAS++ system in the medium term. How to Deactivate TIN in Bangladesh: A Comprehensive Guide

BNP Secretary General Mirza Fakhrul Islam Alamgir on Monday said the real income of the country’s 90% people has marked a fall but the government has been showing a 'hoaxed' GDP growth to hide its failure to control the price hike of essentials. "It’s horrible that the lives of people have become miserable due to the rise in commodity prices. But the government is denying it outright. Ministers are saying that the prices have gone up with the rise in their (people's) incomes," he said. Speaking at a discussion, the BNP leader said the government has been trying to fool people by talking about GDP growth and the rise in per capita income. "Whose income has increased? They (govt) show a hoaxed GDP. What's GDP? GDP is calculated by adding up all things, including that comes from production,” said Fakhrul, also a former teacher of economics. Also read: Draft regulations on digital media going to suppress people’s voice: BNP Swadhinata Forum arranged the programme at the Jatiya Press Club, marking the first death anniversary of late BNP standing committee member Moudud Ahmed. On March 16 last year, Moudud Ahmed died while undergoing treatment at a Singapore hospital at the age of 81. About the 'hoaxed' per capita income, Fakhrul said it is measured by dividing the nation’s total income with the country’s population. “For example, I earn Tk50,000 a month while my brother earns Tk5,000 a month. If you divide these incomes together, then the per capita income will be Tk25,000 But it’s not our real income.” He said around 90% of people are earning lower than earlier while the poverty rate has risen by another 2% in the country. Fakhrul alleged that the Awami League government has constituted the Election Commission to hold another election of fraud as they did earlier. Also read: Need greater unity to oust AL govt: Fakhrul He warned that people will come up with strong resistance this time and thwart all evil plans of the ruling party. Recalling the chequered life of Barrister Moudud Ahmed, the BNP secretary general said he was a truly knowledgeable and prudent politician. “Knowledge and wisdom are not given that much importance these days in politics as we’re passing through a time of tainted politics,” he observed. Fakhrul said Moudud had fought for democracy throughout his life. “He was evicted from his house and many false cases were filed against him as he wanted to restore democracy. We must get united to materialise his desire. ”

Bangladesh achieved an impressive 6.94 percent GDP growth in the 2020-21 fiscal year amid the Covid-19 pandemic, according to a final estimate of the government. The country's GDP size stood at US$ 416 billion and the per capita income rose to US$ 2,591 (as per GNI) in the last fiscal year, said Planning Minister MA Mannan quoting the estimate. Read:Govt targets 17% expenditure of GDP for next two fiscals: Document The estimate was placed at the weekly meeting of the Executive Committee of the National Economic Council (Ecnec) on Tuesday. Ecnec Chair and Prime Minister Sheikh Hasina presided over the meeting, joining it virtually from her official residence Ganobhaban. Other ministers and officials concerned were connected with the meeting from the NEC conference room.  "The GDP growth rate finally stood at 6.94 percent in the last fiscal year, which is much higher than the provisional estimate of 5.43 percent," said Minister Mannan while briefing reporters after the meeting. 

Bangladeshis working abroad are expected to send huge money back home over the next three fiscal years helping the country’s foreign currency reserve to hit USD 53.99 billion by the middle of 2023-24 fiscal year. The government projects over a 12 percent increase on average in the inflow of remittance, the key driver of the country’s more than $409 billion economy, over the next three fiscal years, including the current one. According to a Finance Ministry document obtained by UNB, the remittance inflow of 2019-20, 2020-21 and 2021-22 was 11.2 percent and 36 percent while the target for the current 2021-22 fiscal is 15 percent with a projection of 12 percent and 10 percent for 2022-23 and 2023-24 fiscals respectively. Read:Bangladesh Bank allows receiving remittances through OPGSPs The document reveals that the foreign exchange reserve was USD 36.04 billion and USD 44 billion in 2019-20 fiscal and 2020-21 fiscal respectively while the target for the current 2021-22 fiscal is USD 48.37 billion with projection of having USD 50.74 billion and USD 53.99 billion for 2022-23 fiscal and 2023-24 fiscal respectively. For a developing and emerging economy, the role of foreign remittances has always been crucial. In the context of Bangladesh, foreign remittances are expected to help reduce the current account deficit and augment GDP growth by stimulating domestic demands, the document says. On the other hand, it says, the micro-level context shows that remittance inflows affect the lifestyle of the household as well as increase the saving level that can serve as an important source of capital. The document mentions that the government has taken several initiatives to increase remittance inflows as well as foreign employment. The initiatives include providing cash incentives for sending remittances through banking channels, simplification of remittance-related rules and regulations, reduction in administrative costs for sending remittances through financial institutions and exploration of new market sources for manpower export. The official remittance inflows began going up in the 2020-21 fiscal despite global and domestic impacts of the Covid-19 pandemic. The total inflow of foreign remittances during the 2020-21 fiscal was $24.77 billion which is 36 percent higher than the same period of the previous fiscal year. According to the document, the current account deficit widened in the 2019-20 fiscal due to weak exports before moving into surplus in the 2020-21 fiscal, supported by a surge in official remittance inflows.

In the midst of the most significant economic slowdown in decades, the fisheries sector in coastal district Jashore proved a mainstay for the economy in the 2020-21 fiscal, that helped Bangladesh avoid recession or even contraction. Bangladesh’s GDP growth fell from 8.2% in the 2019-20 fiscal to just 3.8% in 2020-21 – theslowest annual growth in the country’s GDP in 30 years. That represents a slump in economic activity that would have been unacceptable in normal times. But in a year blighted by the virus where we saw most countries experience contraction in their economies (negative growth), Bangladesh’s 3.8% was the fifth-highest GDP growth rate in the world. Read Hilsa Ilisha: The National Fish and Silver Pride of Bangladesh The economic downturn brought on by the pandemic affected almost every sector in the country. The impact was pervasive yet uneven. This was the general picture reflected in most economies around the world. For the record, the world economy did fall into recession in 2020, with the IMF's final assessment estimating it shrank 3.3%. The fisheries sector emerged as one of the major pillars holding up the economy and helping Bangladesh to avoid a recession. Technically, a country’s economy enters recession once it experiences two successive quarters of negative growth, or contraction. To get out of a recession then requires two successive quarters of growth back. Read: Hilsa prices rise as catch from the Padma dries up  

The government has taken a massive move to upgrade the railway network of the country as within the land communication system, the railway sector is considered as the safest, comfortable, affordable and environment-friendly means for transporting passengers and goods. Considering the importance of railways as a means of public transport in meeting the demands of the country's large population , the government has been taking a range of steps to ensure balanced and integrated development of the sector.  Read: Special cattle train starts on Chapainawabganj-Dhaka route As part of the 30 year revised master plan (2016-2045) of Bangladesh Railway, Cox's Bazar, Mongla Port, Tungipara, Barisal, Chattogram Hill Tracts and other parts of the country will be brought under the railway network. The plan spans the period earmarked for Bangladesh, having graduated to become a middle-income nation, to take the next step and becoming a prosperous nation (Vision 2041). Under the master plan, 230 projects will be implemented in six phases at a cost of Tk. 553,662 crore (5.5 trillion)- nearly the size of the entire national budget passed recently for the current fiscal (2021-22).  According to an official document, the government is going to construct 798.09 km of new railway lines, 897 km of dual gauge/double railway lines parallel to existing railway lines. Read Railway launches luggage van to transport vegetables It will also rehabilitate 886.51 km of railway lines, construct nine important railway bridges, and construct level crossings.

Bangladesh urgently needs to go for a fresh round of reforms to strengthen the private sector to tap its economic potentials and accelerate the export-led growth, said a report on Wednesday. The report titled ‘Bangladesh Country Private Sector Diagnostic (CPSD), prepared by IFC and the World Bank, also said Bangladesh’s post–Covid recovery will force a reimagining of its developmental model, highlighting the importance of the private sector and making the reform agenda even more urgent. Taking part in the virtual report-launching event, experts said Bangladesh has the potential of becoming an economy of $800 billion by 2030 from the current $300-billion one if proper steps are taken to diversify its export basket and ensure the ease of doing business through necessary reforms. Launching the report, Prime Minister's Private Industry and Investment Affairs Adviser Salman F Rahman said the diversification of export is very important, though the country has been facing challenges in this regard. “Our dependence on the RMG has been highlighted for a long time that we need to diversify our exports …diversification should be our priority now.” He said the RMG sector has got tremendous support from the government for its expansion, but similar support has not been given to other areas, and this is something the government is now seriously looking at. “What we really need to do is to identify the reasons for which the garment sector has been so successful and we can apply the same principles to the other sectors.” Also read: Covid-19 affected 60 million-plus domestic workers in informal economy: ILO Salman said protectionism for the domestic industry is necessary since the country is going to graduate to a middle-income one.  “The pharmaceutical industry which has been identified as a real growth sector since it has got that protectionism. “Bangladesh had a positive GDP growth rate last year despite the adverse impact of the Covid-19 pandemic and it was the only country in South Asia which did not experience a recession. We’ve prepared the Eighth Five Year Plan keeping all the challenges of the pandemic in mind,” he said. The PM’s adviser said the CPSD recommendations are well aligned with the priorities of the government’s Eighth Five Year plan for setting a trajectory towards a prosperous Bangladesh by 2041. As the country is aspiring to achieve double-digit growth, Salman said, the government has taken various steps, including developing the infrastructure, increasing foreign direct investment and creating an investment-friendly climate. He said the economic zones and mega connectivity projects like Matarbari Port and Padma Bridge that are now under construction will be the gamechangers in the coming years. He said the agro-processing industry is making good progress and it will be another gamechanger for Bangladesh.    Also read: Govt. goes for more consumption and investment to recover economy from pandemic loss Mamun Rashid, Managing Partner, PricewaterhouseCoopers Bangladesh Private Limited, said the report has focused on the private sector capacity building as well as the government’s capacity building.  “When we’re talking about reforms and strengthening capacity building, I try to draw your attention towards the capacity building of our private sector, efficiency improvement of our private sector as well as improving the overall balance sheet of the private sector,” he said. IFC’s Vice President (Asia and Pacific), Alfonso Garcia Mora said the need for reforms will become even more compelling for Bangladesh to overcome the fallouts of the Covid-19 pandemic. “Finding new sources of income and growth will be an urgent priority.” He also said the private sector, which already accounts for more than 70 percent of all investment in Bangladesh, supported by a strong financial sector, will need to play an important role in spurring the recovery so the country can grow, export and create quality jobs. IFC Country Manager Wendy Werner said it is clear the private sector has an important role to play to meet the rising demand for quality healthcare and improving the efficiency of delivering health services, as health financing in the country is low compared to others at a similar level of development. “Bangladesh could also target high-end markets and introduce new technology in the readymade garment sector, and seize opportunities in footwear, leather electrical goods, and agribusiness exports,” she observed. Also read: Budget document: Preparations under way to face the challenges of developing economy World Bank’s Country Director Mercy Tembon said readymade garments have contributed significantly to Bangladesh’s economic growth. “For a more resilient, inclusive and sustainable growth, Bangladesh will need to diversify its export basket and develop a robust and sophisticated private sector, relevant in the post–Covid recovery phase when public resources will be needed most in the social sectors.” The report says key priority areas for the reform agenda include creating a favourable trade and investment environment for domestic and foreign investors, modernising and expanding the financial sector and removing impediments for developing infrastructure. “Transport and logistics, energy, financial services, light manufacturing, agribusiness, healthcare and pharmaceuticals sectors are among those with the strongest potential for private investment that could play a significant role in boosting economic growth,” the report observes.

The target of 7.2 percent GDP growth in the upcoming fiscal won’t be fulfilled as it is not realistic considering different economic indicators, according to an immediate reaction to the proposed budget for 2021-22 from the Centre for Policy Dialogue, a leading think-tank. “We think that the 7 percent plus GDP growth will not be materialistic and fulfilled,” said CPD Executive Director Fahmida Khatun at a virtual press conference in the evening. Noting that 6.1 percent GDP growth is being recorded in the outgoing fiscal year, she said, “We think there is a thin possibility to attain the higher growth than it (growth in outgoing fiscal), considering what we are seeing in other economic indexes. Rather it might be less ( than 6.1 percent).” The CPD Executive Director said the targets for overall revenue collection, expenditures, investment and other things are not realistic either. Also read: New budget unveiled with focus on protecting lives and livelihoods “No significant change is not in the revenue collection. If we compare it with the revised budget, we see a discrepancy between the budget implementation rate in the 10 months and the proposed revenue target… The target for revenue collection would be raised by 30 percent, which is much higher,” she said. Fahmida said some structural changes are seen in financing the budget. Resources would be mobilised from foreign sources to finance the budget, which is a welcoming matter and it has been done rightly. Because, the private sector may require loans from the country’s banks, though the private investment is not increasing yet, she added. She said now Bangladesh is in a comfortable zone to repay loans as the debt-GDP ratio remains at a satisfactory stage, but Bangladesh needs to be careful so that the ratio does not spike. The CPD executive director said it is not that budget that would have required to face the Covid-19 on the one hand and recover the economy on the other hand. Also read: New budget: Tracking prices going up and down The implementation of the Covid-period budget would be a challenge due to weak projections and limitations in implementation, she said. “In this budget, there should have been clear indications for several years over health, education, social and employment sectors, expenditure structures in other sectors, and revenue collection,” she said. Fahmida said no tax justice was seen in this budget as the tax-free income limit has been kept unchanged. If the limit would have been raised, low-income people would have disposable income in their hands, she added.

Global shares mostly rose Monday amid hopes economies slammed by the pandemic will bounce back, as attention turned to upcoming company earnings.

Foreign Minister Dr AK Abdul Momen on Sunday hoped that the relations between Bangladesh and the United States would reach a new height under President Joe Biden.