Bangladesh Economic Update, May 2015
The current issue of Bangladesh Economic Update identifies ten major economic challenges causing shortfall in growth in gross domestic product (GDP) vis-à-vis target, slack private investment, and shortfall in collection of revenue vis-à-vis target. The Update presents a thorough scrutiny of the challenges that the economy has undergone during FY 2014-15 and should take into consideration while declaring the budget for FY2015-16. The Update, however, also presents a critical analysis of the trends of selected economic indicators with respect to three overarching policy issues – expansion of productive capacity, effective provision of social services to the citizens, and sustainable development – that must be taken account of before setting off for the formulation of national budget 2015-16. Finally, the Update attempts to develop an institutional reform measure that specifying the functions and responsibilities of the administrative structure of current fiscal management would confirm the effectiveness of economic management in the country through enhanced capabilities and greater accountability of responsible authorities. The target of rate of growth in GDP has been being set over seven percent in recent years, whereas the actual has been sticking to around six percent. The slow rate of growth in GDP can however be ascribed to mainly three issues – stagnant private investment, shortfall in revenue collection and low implementation of ADP along with lack of infrastructural developments.