Domestic resource mobilisation for inclusive growth and development: Priority reform areas
Bangladesh continues to face serious revenue mobilisation challenges, limiting its ability to fund essential development priorities and reducing its fiscal resilience to external economic shocks. This policy brief provides a snapshot of Bangladesh's current domestic resource mobilisation (DRM) landscape and offers a few recommendations for urgent consideration.
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Razzaque-et-al-Policy-Brief-March-2025.pdf
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- Historically, Bangladesh has maintained a low revenue-to-GDP ratio, hindering its ability to finance public services and infrastructure development. The country continues to face serious revenue mobilisation challenges, limiting its ability to fund essential development priorities and reducing its fiscal resilience to external economic shocks.
- This policy brief provides a snapshot of Bangladesh's current domestic resource mobilisation (DRM) landscape and offers a few recommendations, the implementation of which should be considered urgently. These include broadening the tax net, reducing reliance on indirect taxes, digitising processes, enhancing enforcement, and building taxpayer trust through efficient use of public funds.
- With careful and progressive fiscal reforms, Bangladesh can establish a resilient tax system that supports stable revenue generation, promotes inclusive growth, and positions the economy for long-term success.