Government facing big revenue deficit: CPD

 
The Centre for Policy Dialogue (CPD), a leading think tank in Bangladesh, has projected a revenue shortfall of Tk82,000 crore by the end of the fiscal year 2023-2024.

"The revenue collection has yet to meet the target for the first six months of the ongoing fiscal year. To meet the overall target in the remaining six months, revenue collection must be around 54.4%, which is exceptionally challenging," Centre for Policy Dialogue (CPD) Executive Director Dr Fahmida Khatun said, noting that the country may face a revenue shortfall of Tk82,000 crore.

The revenue collection target was 36.3%. However, only 13.9% of the target had been achieved by December.

While addressing a media briefing on "Recommendations for the National Budget for the Fiscal Year 2024-2025," held at the CPD's office in Dhanmondi yesterday, Dr Fahmida Khatun observed the country's overall economy is currently undergoing a crisis.

"There remains an instability in the overall economy, with significant pressure mounting," she remarked.According to CPD, the country's macroeconomic challenges include a decline in revenue collection, liquidity crisis in banks, reduced exports and remittance income, and a decrease in foreign currency reserves.

Dr Fahmida said the government's development spending was also down, reaching just 25.5% of the planned budget, compared to 27.2% the previous year.The CPD executive director, however, noted a silver lining with the budget deficit reduced to Tk7,885 crore in six months, a decrease from last year's Tk20,000 crore.