State of the Bangladesh Economy in FY2023-24 (First Reading) slide image

State of the Bangladesh Economy in FY2023-24 (First Reading)

Independent Review of RBD Bangladesh's Development Conditionalities Recommendations for the upcoming medium and long term revenue strategy (MLTRS) IMF conditionalities concerning public finance relevant for FY2024 Floor on primary balance (PC) As of December 2023: Tk. (-) 905.2 billion As of June 2024: Tk. (-) 1,383.6 billion Floor on tax revenue (IT) As of December 2023: Tk. 1,436.4 billion As of June 2024: Tk. 3,945.3 billion Floor on priority social spending of the Government of Bangladesh (IT) As of December 2023: Tk. 309.9 billion As of June 2024: Tk. 1,449.5 billion Comments The December 2023 target of Tk. (-) 1,141.1 billion has been adjusted in view of the revised economic outlook, and policy measures have already been taken. If the June 2024 target is to be met, then tax revenue collection will need to increase by 20.4%. For this to happen, tax collected by NBR will need to grow by 22.6% during the November-June period of FY24 (according to NBR data) - a feat highly unlikely to be achieved. Priority social spending (domestically financed) will need to increase by 15.9% if the June 2024 target is to be met. Floor on capital investment undertaken by the Government of Capital investment (domestically financed) will need to increase |Bangladesh (IT) As of December 2023: Tk. 222.8 billion As of June 2024: Tk. 1,445.4 billion by 16.9% if the June 2024 target is to be achieved. CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading) 14
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