According to IMF projections, Bangladesh is expected to surpass neighbouring economies like India, Nepal, and Pakistan in reaching a double-digit revenue-to-GDP ratio in the fiscal year 2026–2027.
According to the multilateral lender’s most recent Fiscal Monitor report, which was published on 17th April, the country’s revenue-to-GDP ratio will be 9.3 per cent in FY ’25, 9.9 per cent in FY ’26, and 10 per cent in FY ’27.
The current fiscal year is likely to see an increase in Government revenue, which is predicted to come in at 8.8 per cent of GDP, up from an estimated 8.3 per cent last year. 9.4 per cent in FY ’21 and 8.9 per cent in FY ’22 was the ratio.
Meanwhile, among South Asian economies, Bangladesh’s revenue-GDP ratio was considerably lower than that of India and Nepal in FY ’23. Both countries achieved an estimated double-digit revenue-to-GDP ratio, with 20.2 per cent and 19.3 per cent of GDP, respectively.
Pakistan’s government revenue, meanwhile, accounted for 11.4 per cent of GDP.
The report mentioned, “Tax revenues should keep up with spending over time. Emerging markets and developing economies have a significant scope to increase tax revenues by upgrading tax systems, expanding tax bases, and enhancing institutional capacity.”
“This could also help pay for strategic public investments needed to facilitate the diffusion of green and digital technologies.”
“A risk-based, credible fiscal framework could help guide the process to rebuild fiscal space and reduce debt vulnerabilities,” reads the report.
