Tk 750b revenue shortfall to widen current fiscal’s budget deficit: CPD

[Black_cats]

Tk 750b revenue shortfall to widen current fiscal’s budget deficit: CPD​

Prothom Alo English Desk
Published: 27 May 2023, 10: 22

CPD executive director Fahmida Khatun presented periodic review of the Bangladesh Economy at the think-tank's office in Dhanmondi on SaturdayUNB

The Centre for Policy Dialogue (CPD) on Saturday said revenue shortfall would be approximately Tk 750 billion (75,000 crore) in the current fiscal year (2022-23), causing the budget deficit to widen.

"The government borrowed Tk 54,501 crore (545 billion) from the Bangladesh Bank until February and media report the borrowing from the central bank rose to Tk 74,393 crore (Tk 744 billion) until April of this fiscal year, this brings a negative impact on the macroeconomy," it said.

CPD hinted that the government borrowing from a domestic source (bank) will create inflationary measures in the economy. Rather it suggests the government should prioritise mobilising foreign-funded budgetary support.

CPD executive director Fahmida Khatun presented the think-tank's periodic review of the Bangladesh Economy, this being the third of the 2022-23 fiscal, at CPD's office in Dhanmondi on Saturday.

Although the price of fuel is falling in the international market, its effect is not seen in the domestic market, she pointed out.

CPD said BPC's total profit in the last seven years from FY2015-16 to FY2021-22 was about Tk 438 billion (43,804 crore). After paying Tk 77 billion (7,727 crore) as income tax, BPC's net profit was Tk 361 billion (36,074 crore).

Being a monopoly and state-owned enterprise, enjoying windfall gains by penalising the citizens of the country cannot be justified, it said.

The think tank suggested the government look into the surge of inward remittance from the USA instead of the Middle East, where a large number Bangladeshi expatriates are working.

The think tank said in 10 months of FY 2021-22 (July-April), around USD 3.86 billion remittances came in the country from Saudi Arabia, but in the same period of the current financial year, remittances decreased to $3.04 billion.

CPD suspects the sudden increase in remittances from the USA is recycling of smuggled money that was sent from Bangladesh to America in different shapes of trade-based money laundering.

It suggested cutting on duty of daily essential products used by common people temporarily as a relief to reduce price. In that case market monitoring is also necessary.

The scope of direct assistance to the poor needs to be increased, thinks the CPD. It is also necessary to ensure that the right people are getting it, the think tank added.

Export growth rate is not positive and falling short of target, it noted. In May and June (Last two months of the current fiscal year) it should be increased by 41 per cent, which is very difficult.

Distinguished fellow Mustafizur Rahman, research director Khondaker Golam Moazzem Hossain, senior research fellow Tawfiqul Islam Khan, among others, spoke on the different issues.

Tk 750b revenue shortfall to widen current fiscal’s budget deficit: CPD

The Centre for Policy Dialogue (CPD) on Saturday said revenue shortfall would be approximately Tk 750 billion (75,000 crore) in the current fiscal year (2022-23), causing the budget deficit to widen.

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[bluesky]

It is necessary to raise the amount of many different taxes. BD is run not by rules of law, but by the rule of Thumb.

BD is a bloody medieval country. Whatever Hasina utters become laws and rules. It will happen the same when that half-educated Khaleda comes to power.

Her son no better. It took two times for him to go up to class nine. Wish a few educated technocrats with knowledge of financial matters come to the fore after the next election.

 

[protean]

This is the story every year. Bangladesh bulges up their budget and at the end cut it down by 20% each year. Most countries including India revises their estimates higher in the middle of the year and even then exceeds the revised estimates at the end. Bangladesh tax to GDP is one of the lowest in the world and yet they fall short in revenue collection each year. All I can say is BBS can manipulate GDP numbers but it can't manipulate hard cash. I foresee a tax to GDP ratio of 5% as Bangladesh keeps saying thier GDP is growing by 13-15% (including inflation) annually. All the chest thumping on PDF will come to naught in a few short years.

https://www.google.com/amp/s/www.thehindu.com/business/Economy/net-direct-tax-collections-up-1763-exceed-revised-estimates-target/article66696101.ece/amp/