The National Board of Revenue (NBR) failed to meet revenue collection targets, resulting in a Tk 42,000 crore deficit for the first five months. The National Board of Revenue (NBR) also did not meet its revenue collection targets in November. Revenue collection in the first five months of the current fiscal year has declined by 2.62% compared to the same period the previous fiscal year. Economists contend that unless the Bangladesh Bank abandons its contractionary monetary policy, revenue collection will not improve.
The National Board of Revenue (NBR): To pay the expenditures of operating the country, the Ministry of Finance has set a revenue target of Tk 4.8 trillion for current fiscal year. However, in the midst of upheaval caused by protests, conflicts, and power shifts, the government is enacting a contractionary monetary policy to control inflation. In this setting, the NBR is failing to reach its revenue goals.
According to the organization’s latest figures, revenue collection for the five months of July to November in the current fiscal year 2024-25 totaled Tk 126,777 crore. This is Tk 42,238 crore less than the objective, representing a 2.62% decline over the same period previous year.
In November alone, overall income collection was Tk 25,359.57 crore, 9% lower than the same month last year.
Economists say the drop-in revenue collection in the current fiscal year is related to the country’s slow commercial activity. In such a case, they propose abandoning contractionary monetary measures. Economist Dr. Mahfuz Kabir observed, “We must progressively transition away from contractionary monetary policy. If the Bangladesh Bank does not change its approach, revenue collection will not improve. They also underlined the importance of lowering loan interest rates in order to encourage investment.
