Revenue Mobilisation: Trends and Challenges

MONTHLY Bangladesh Economic Update, October 2016

October 2016

The Unnayan Onneshan (UO), an independent multidisciplinary think tank, in its monthly publication of Bangladesh Economic Update October 2016 reveals that decline in the rate of growth in total revenue collection in recent times together with an extant of low tax-gross domestic product (GDP) ratio is likely to slow financing for development.

The research organization finds that the rate of growth in revenue mobilization has declined since FY 2011-12. Actual mobilization of total revenue grew by 19.3 percent in FY 2011-12, whereas the rate of growth decline in the subsequent years and stood at 15.2 percent, 10.4 percent, 13.5 percent, and 13.8 percent in FY 2012-13, FY 2013-14, FY 2014-15, and FY 2015-16 respectively.

Furthermore, it is estimated that Bangladesh has the potential to increase the mobilization of its revenue up to 22 percent of gross domestic product (GDP) whereas the total revenue mobilization as percentage of GDP stood at 10.89 percent, 11.65 percent, 11.66 percent, 10.78 percent, and 10.26 percent in FY 2011-12, FY 2012-13, FY 2013-14, FY 2014-15 and FY 2015-16 respectively.





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