Governor urges boost in domestic revenue

Staff Reporter :

Bangladesh Bank (BB) Governor Dr. Ahsan H. Mansur on Wednesday emphasised the urgent need to strengthen domestic resource mobilisation as global aid declines and traditional donor countries increasingly focus inward.

“During the early 1970s, foreign aid accounted for nearly 12-14 percent of our national budget. That reliance has now been sharply reduced. I am convinced that enhancing our own resource mobilisation capacity is both possible and necessary,” he said at an event hosted by CARE Bangladesh in Dhaka.

Dr Mansur noted that while the government has implemented some initiatives, internal resistance remains a key obstacle. “For example, the recent strike at the National Revenue Board reflected attempts by officials to preserve the status quo,” he observed.

He stressed that overcoming such inertia is essential to increase revenue collection. “We cannot afford to remain stuck. Breaking away from this stagnation is critical if we are to expand domestic resources,” he added.

Highlighting regional benchmarks, Dr Mansur said, “India collects revenue equivalent to 18-20 percent of its GDP, and Nepal exceeds 20 percent.

Why should Bangladesh remain at its current low level? These are questions we must confront. The target is achievable, and the financing gap is not insurmountable.”

He further argued that development financing should not rely solely on public funds. “We need to fully leverage private capital, both domestic and foreign,” he said, pointing to opportunities in global capital markets.

Sovereign bonds, private sector borrowing, and increased foreign direct investment could all serve as practical tools to bridge the funding gap.

Concluding, the governor noted: “The international landscape has changed. Industrialised nations are focused on their own challenges. We must chart our own course, and East Asia’s experience demonstrates that this is possible.”