'No more onion import from India'

[fallstuff]

Bangladesh should not source all its import from India only, they should diversify to hedge against India's unpredictability.

 

[Protest_again]

True. But unlike india our public debt is 33 percent and external debt is only 15 percent of gdp. So we have lot of fiscal room left to carry out projects. Indian public debt is 60 percent plus maybe? I dont know exactly.

India tax revenue is some 30 times yours. India can easily service those loans. As you improve your tax revenues, your govt will be the first to run get more loans. Its that simple.

 

[Imran Khan]

a husband and wife our next door fight so much man

 

[mmr]

India tax revenue is some 30 times yours. India can easily service those loans. As you improve your tax revenues, your govt will be the first to run get more loans. Its that simple.

Going back to original argument. Reason bd will grow 7 percent plus in coming decade because we dont have high public debt. Will help bd government to keep carry infrastructure projects. If we ever become 70 percent public debt like india we will worry. But chances of that happen very low as in last 11 years only once bd has over 5 percent budget deficit.
India dont have much fiscal room left to prop up deamnd. More tax cut mean more fiscal deficit mean that 70 percent public debt india has will only increase.

India stopped export because we were facing crisis ourselves. We are not responsible for Bangladesh. It was alright if the minister said he didn't want to face similar situation. But he said India stopped export without notice as if we produce for his pleasure. Thats just diabolical of him.


Lol. You are fun.

I agree india has to take care its own citizen first. And onion price is sensitive in domestic politics in south asia.

 

[Protest_again]

Going back to original argument. Reason bd will grow 7 percent plus in coming decade because we dont have high public debt. Will help bd government to keep carry infrastructure projects. If we ever become 70 percent public debt like india we will worry. But chances of that happen very low as in last 11 years only once bd has over 5 percent budget deficit.
India dont have much fiscal room left to prop up deamnd. More tax cut mean more fiscal deficit mean that 70 percent public debt india has will only increase.

You do not understand how debt is raised. Bangladesh tax revenue is $25 billion dollars. You have as much to service loans. For India it is $550 billion dollars. So India revenues are 22 times yours. So India has better ability to service such loans.

That is why India's credit rating is still better than Bangladesh. India can still raise more loans at lower interest rate than Bangladesh from outside.

Look at the difference between your revenues and expenses.

$24.36 billion in revenues but spends some $62 billion in budget. You are spendi ng more than twice your revenues.This is managed through loans. This can only continue if there is corresponding increase in tax revenues. Like I said, your tax revenue growth budgeted was to be 18% but acheived only 2%

Now look at India's. Tax revenues $550 billion spends $750 billion. States generate another $250 billion in revenues.

If India spend in the same ratio as Bangladesh, it could have been $1.3 trillion central budget. Our tax revenues have been growing double digits for past 20 years, except may be this year.

 

[mmr]

You do not understand how debt is raised. Bangladesh tax revenue is $25 billion dollars. You have as much to service loans. For India it is $550 billion dollars. So India revenues are 22 times yours. So India has better ability to service such loans.

That is why India's credit rating is still better than Bangladesh. India can still raise more loans at lower interest rate than Bangladesh from outside.

View attachment 601622

View attachment 601623

Look at the difference between your revenues and expenses.

$24.36 billion in revenues but spends some $62 billion in budget. You are spendi ng more than twice your revenues.This is managed through loans. This can only continue if there is corresponding increase in tax revenues. Like I said, your tax revenue growth budgeted was to be 18% but acheived only 2%

Now look at India's. Tax revenues $550 billion spends $750 billion. States generate another $250 billion in revenues.

If India spend in the same ratio as Bangladesh, it could have been $1.3 trillion central budget. Our tax revenues have been growing double digits for past 20 years, except may be this year.

It is not through loans. Its because we have 18 billion remittance to close the gap. If you are correct are you telling us bd is borrowing 40 billion dollar yearly and yet public debt remain only 33 percent year over year? Bd public debt only once cross 40 percent of gdp in early 2000 but after that it continue to remain same or going down.

If you have balance budget by state and central govt why india has 70 percent public debt? It should been zero. If revenue growing double digit how come public debt not coming down? Something dont add up.

 

[Protest_again]

It is not through loans. Its because we have 18 billion remittance to close the gap. If you are correct are you telling us bd is borrowing 40 billion dollar yearly and yet public debt remain only 33 percent year over year? Bd public debt only once cross 40 percent of gdp in early 2000 but after that it continue to remain same or going down.

If you have balance budget by state and central govt why india has 70 percent public debt? It should been zero. If revenue growing double digit how come public debt not coming down? Something dont add up.

Lol. Remittances are not counted in budget. They are just forex. Remittances are transfers to kin in your country by people living abroad. Its not like GOB confiscate all remittances and count them towards revenues. You clearly lack understanding. You are just taken into 'Bangladesh rising' slogan and just mumbling words.

I have to look into budget to answer your question. How Bangladesh is managing the budget deficit. I'll get back to you on that.

We do not run balance budgets. Indian states run budget deficits too. Hence the growth in our debt. Together with states, Indian budget is closer to a trillion.

 

[mmr]

Lol. Remittances are not counted in budget. They are just forex. Remittances are transfers to kin in your country by people living abroad. Its not like GOB confiscate all remittances and count them towards revenues. You clearly lack understanding. You are just taken into 'Bangladesh rising' slogan and just mumbling words.

I have to look into budget to answer your question. How Bangladesh is managing the budget deficit. I'll get back to you on that.

Not mumbling just stating fact. Bd public debt 33 percent vs india 70 percent debt. Hence no fiscal room to prop up demand hence hard to recover slowing economy. Imf world bank reduce growth projections of india for a reason.

 

[Protest_again]

Not mumbling just stating fact. Bd public debt 33 percent vs india 70 percent debt. Hence no fiscal room to prop up demand hence hard to recover slowing economy. Imf world bank reduce growth projections of india for a reason.

Yes, India has no room to prop up demand because of fiscal restraints. That is true. But your thinking Bangladesh has room to do such is quite wrong. The prediction was when revenue growth was in double digits.

It is pretty simple if you think about it. You have income of 25 rupees, lets say you borrowed another 20 this year, hoping that your revenue for next year be 30. And you'll have used additional income (5 rs) to service the 20 rupees loan and use the rest to developmental activities.

Now actual revenue in the next year came out to be 26 instead of 30 expected. So the next year you are actually cutting down the budget to service the loan and no additional developmental activities can be undertaken.

Thats the situation right now. There is no fiscal room because there is no revenue increase. Debt to GDP is just a ratio, has no real meaning. Most important ratio is revenue to debt.

 

[mmr]

Yes, India has no room to prop up demand because of fiscal restraints. That is true. But your thinking Bangladesh has room to do such is quite wrong. The prediction was when revenue growth was in double digits.

It is pretty simple if you think about it. You have income of 25 rupees, lets say you borrowed another 20 this year, hoping that your revenue for next year be 30. And you'll have used additional income (5 rs) to service the 20 rupees loan and use the rest to developmental activities.

Now actual revenue in the next year came out to be 26 instead of 30 expected. So the next year you are actually cutting down the budget to service the loan and no additional developmental activities can be undertaken.

Thats the situation right now. There is no fiscal room because there is no revenue increase. Debt to GDP is just a ratio, has no real meaning. Most important ratio is revenue to debt.

Sorry cant agree with you that debt to gdp is just a ratio. lets agree to disagree. Good discussion though.

 

[Protest_again]

Sorry cant agree with you that debt to gdp is just a ratio. lets agree to disagree. Good discussion though.

Sure no problem. I just want to add a reference here. Bangladesh is quite poor in raising tax revenues. It needs to improve a lot.

Here is the public finances of my state. It has a population of about 4.9 crores. Look at the revenues.

So you see what I am saying. Its only $150 billion dollar economy.

 

[UKBengali]

@Protest_again

Government revenue and tax revenues are not the same in BD. For the last 5 years it has been hovering at around 10% of GDP. For last fiscal government revenue was around 32 billion US dollars. Still low by Indian standards but not as low as you think.

 

[Protest_again]

@Protest_again

Government revenue and tax revenues are not the same in BD. For the last 5 years it has been hovering at around 10% of GDP. For last fiscal government revenue was around 32 billion US dollars. Still low by Indian standards but not as low as you think.

Yes, I saw that. Public finances (esp. revenue)I quoted was actuals for the year 2018-19. Expenditure was for 2019-20. So there was a discrepancy. But still my point stands.

Here is an article about low tax revenues.

Low revenue forces Bangladesh to tighten belt

The finance ministry has asked all ministries and divisions not to seek additional fund in the current fiscal year in a signal that the government is tightening its belt amid a revenue shortfall, officials said.

The ministry furnished the instruction with regard to the operating and development budgets in a circular issued in December in its process of revising the Tk 5,23,190 crore budget for the 2019-20 fiscal year.

Finance Division additional secretary Habibur Rahman said that they had issued the circular to help others to understand the criteria for the budget revision process.

Seeking no additional fund is one criterion, he said.

Other finance ministry officials, however, said that such provision was not seen in the last fiscal year’s directive for the revision of the budget.

They said that the ministries and divisions were asked to keep the operating and development budgets as projected in the original budget so that the government does not face additional financial burden against the backdrop of the revenue shortfall.

The revenue income, according to officials, was only Tk 83,692 crore in the July-November period of the FY20 against a collection target of Tk 1,10,568 crore for the period.

The National Board of Revenue suffered the Tk 26,876-crore shortfall mainly due to the poor performance of the board’s VAT and customs wings and the dismal economic performance of the country during the period.

Besides the poor revenue growth, the government’s borrowing from the banks significantly increased reaching Tk 48,015.81 crore during the period from July 1 to December 31, 2019, according to the Bangladesh Bank’s ‘Fortnightly Trends of Major Economic Indicators: Updates on 31 December 2019’.

The bank borrowing for the entire fiscal year has been earmarked at Tk 47,364 crore.

At a meeting of the coordination council on macroeconomic and budget management on November 25, the country’s policymakers viewed the poor revenue collection with anxiety.

Bangladesh Institute of Development Studies director general KAS Murshid said that the revenue shortfall started ‘biting’ now although poor revenue collection was always a worry for the government.

He said that the government should not ignore the crucial issue and should immediately review the policies for augmenting the revenue collection to achieve the status of a higher middle income country for Bangladesh.

Finance minister AHM Mustafa Kamal has already asked the tax people to expedite coordinated efforts to achieve the revenue collection target of Tk 3,25,600 crore, set for the entire fiscal year.

He blamed immediate past National Board of Revenue chairman Md Mosharraf Hossain Bhuiyan for the delay in the installation of electronic fiscal devices causing the poor revenue collection over the period.

The finance ministry officials hinted at taking further austerity measures as there were no signs of improvement in the revenue earnings.

They said that the last time the finance ministry effected austerity measures was in 2005 in order to ease the pressure on the foreign exchange reserve and the balance of payment in the wake of increases in the prices of petroleum products on the international market.

The austerity steps then included a ban on the purchase of new cars under both the development and non-development budgets, restrictions on the overseas tour by the government officials using public money and a 10 per cent cut in fuel supply to the ministries, divisions, departments and other agencies.

The continuous rise in the prices of petroleum products in the 2004–05 fiscal year put the finance ministry into a precarious situation as the annual bill for the fuel oils more than doubled.

The government had to provide a Tk 2,700-crore subsidy to import 3.8 million tonnes of fuel oils in that fiscal year.

 

[UKBengali]

Lol.

Starting upbeat, Bangladesh’s economy ends 2019 tanking

Actually exports increased in December 2019 from the same month previous year.
GDP Forecasts are now being revised for growth to be around 7.8% for this fiscal.
BD economy is fundamentally pretty strong still.

 

[Bilal9]

Rise my hilsa speaking friends.

Rise !!!

Rise like a Phoenix