Data discrepancies hinder economic planning
Despite recent efforts to address inconsistencies in export data, discrepancies in revenue collection and expenditure figures among government agencies persist.
This, experts say, is hindering effective economic planning. According to the finance ministry, tax collection reached Tk 277.925 billion in the first seven months of the fiscal year 2023-24.
However, the National Board of Revenue (NBR) reported a collection of Tk 289.376 billion during the same period, indicating a significant gap of Tk 11.451 billion.
This discrepancy is not a new phenomenon. Similar inconsistencies were observed in the previous fiscal year, where the finance ministry and NBR reported a difference of Tk 4.031 billion in tax collection figures.
Economists attribute these discrepancies to differences in calculation methodologies.
The finance ministry relies on reports from the Office of the Controller General of Accounts (CGA), while the NBR includes outstanding dues in its calculations.
Similar anomalies exist in the calculation of expenditure under the Annual Development Programme (ADP).
The Implementation Monitoring and Evaluation Division (IMED) reported ADP spending of Tk 125.315 billion, whereas the finance ministry’s figure stood at Tk 92,126 billion, a difference of Tk 33,189 billion.
Experts warn that these discrepancies can have significant implications for economic planning.
“If the finance ministry doesn’t get accurate data on spending, it hampers debt planning,” said Zahid Hussain, a former lead economist at the World Bank in Dhaka.
“If our expenditure calculation is wrong, then whatever plans we make based on it will be based on a weak foundation.”
To address these issues, experts recommend the establishment of a data commission to oversee data collection and ensure consistency across government agencies.
Additionally, they emphasize the importance of strengthening data governance to improve the accuracy and reliability of economic indicators.
The newly appointed NBR chairman has acknowledged the data mismatch and has instructed officials to work towards unifying the figures reported by the NBR, CGA, and Bangladesh Bank.
However, addressing this issue will require concerted efforts from all relevant government agencies.
The government must prioritize data governance and establish a robust mechanism to ensure consistency and accuracy in economic data.
This will enable effective financial planning and decision-making.