‘Govt struggling to deal with current challenges for weak fiscal position’

Bangladesh is struggling to find fiscal resources to deal with the current economic challenges mainly due to a weak fiscal situation, said Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD).

The economic problems in the country are not only for external reasons. There has been an absence of reforms in the fiscal arena for years, he said.

"As a result, the revenue share in the GDP has not gone up more than 10 per cent."

His comments came today during a virtual conversation with the media titled "Overcoming the Current Economic Challenges: towards a Transitional Policy Understanding".

According to the economist, whatever tax revenue is earned that is based on the indirect tax, or the value-added tax.

"So, low-income groups are bearing the same level of tax burden like that of the high-income groups," he said.

"In this situation a transitional policy understanding is necessary. And it has to be developed through a participatory and consultative process."

The target of the understanding would be to stabilise the macro-economy, continue production and employment, and protect the vulnerable people of the country, said the economist.