Govt targets 9.6% Tax-to-GDP ratio by FY31

The government has set a target to significantly raise Bangladesh's revenue collection over the next five years, aiming to strengthen fiscal stability and reduce debt vulnerability.

According to the budget speech, the revenue-to-GDP ratio and tax-to-GDP ratio currently stand at around 8% and 6.8% respectively. 

The government plans to increase these figures to 11% and 9.6% by FY2030–31 through comprehensive policy and administrative reforms, Finance Minister Amir Khosru Mahmud Chowdhury announced today (11 June)

While placing the proposed national budget of Tk 9.38 lakh crore for FY2026–27 in the Jatiya Sangsad, he said detailed proposals for domestic revenue mobilisation will be presented in Chapter VII of the budget document.

He also highlighted concerns over rising public debt, attributing the pressure to what he described as poorly planned and corruption-affected large projects implemented in the past, alongside heavy borrowing to finance them. 

As a result, Bangladesh's debt sustainability has come under "immense pressure, he noted.

The government, he said, is committed to restoring the country's debt risk rating from moderate to low by enforcing strict fiscal discipline, improving revenue mobilisation, keeping the budget deficit within sustainable limits, and modernising debt management systems.

Emphasising a shift in economic strategy, the finance minister said the government aims to move away from a debt-dependent growth model toward an investment-led and production-driven economy focused on employment generation and private sector expansion.