Bangladesh Economic Update November 2013
This issue of Bangladesh Economic Update probes into the tax system of Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue. Bangladesh has comparatively lower tax to GDP ratio, even compared to most of its South Asian counterparts. For example, tax to GDP ratio in Bangladesh was 6.74 percentage points lower than India in FY 2012-13. The gap between the total expenditure and total revenue is increasing over the years. If the same trend continues, it can be anticipated that the gap may become further wider to Tk. 558.5 billion in FY 2013-14 from the targeted Tk. 550.32 billion. The budget deficits may increase by 1.5 per cent against the targeted expenditure of TK 2224.91 billion in the current budget. At the current rate of revenue realisation, the gap between targeted and actualized revenue may increase by 0.5 percent against the target of current budget TK 1674.59 billion. In FY 2012-13, both NBR and non-NBR have failed to satisfy the target of revenue collection with total shortage of Tk. 40777.5 million.