The government exaggerated gross domestic product (GDP) growth figures in the past for political purposes, alleged Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning.
“Previous governments inflated GDP growth rates and the overall size of the economy for political reasons. We have already begun reforms to address this,” he said while briefing reporters at the headquarters of the National Board of Revenue in the capital on Sunday.
Referring to findings from a white paper committee, he said the extent of data manipulation across different sectors of the economy had already been exposed.
“You have seen through the white paper how data was distorted in every sector. Once we determine the real size of the GDP, the tax-to-GDP ratio will also become more realistic,” he added.
He further alleged that beyond corruption, there had been widespread discrepancies in official records.
“You are also aware that not only was there looting, but figures were also manipulated on paper. In recent years, prior to the interim government, the fallen regime consistently presented revenue figures that had little connection with actual collections,” he said.
Describing the situation as “astonishing”, he said such discrepancies could be verified through the government’s financial management system.
“If you look into the system, you will find that the revenues reported during the previous regime do not match the reality,” he added.
Highlighting the challenges facing revenue collection, the adviser said the current government had inherited a “devastated economy”.
“It is no secret that Bangladesh’s economy has collapsed. We have inherited a broken system. At the same time, we have been left with one of the lowest tax-to-GDP ratios in the world – below 7 percent,” he said.
He also pointed to the ongoing tensions in West Asia, particularly involving Iran, as an added burden on the economy.
“This external shock has further aggravated the situation. We must find ways to overcome these challenges,” he noted.
On revenue targets for the current fiscal year, Titumir expressed optimism about improved performance in the final quarter.
“In the next three months, we expect to achieve a higher proportion of our targets than in any previous period. That is our immediate goal,” he said.
“Our second objective is to surpass last year’s revenue collection significantly, which will help raise the tax-to-GDP ratio to 10 percent in the medium term and eventually to 15 percent by 2035,” he added.
Chairman of the NBR, Abdur Rahman Khan, was also present at the briefing.
