Tk 29,000cr revenue gap hits in first 2 months

Bangladesh has recorded a revenue collection shortfall of nearly Tk 29,000 crore in the first two months of the 2026-27 fiscal year, raising concerns over the government’s ambitious annual revenue target.

The National Board of Revenue (NBR) has been tasked with collecting Tk 6.04 lakh crore in FY2026-27, around 46 percent higher than the actual revenue collected in the previous fiscal year.

In FY2025-26, the NBR collected approximately Tk 4.15 lakh crore. The new target therefore requires an unprecedented increase in revenue collection.

Bangladesh’s annual revenue growth has historically never exceeded 27 percent, making the nearly 46 percent growth target particularly challenging.

Revenue collection starts on a weak note
The ambitious target comes at a time when recent revenue collection trends remain weak.

According to preliminary figures provided by NBR officials, value-added tax collection in July declined compared with the same month last year. VAT collection also fell year-on-year in August.

Preliminary estimates show that the overall revenue shortfall during the first two months of the current fiscal year reached nearly Tk 29,000 crore.

Bangladesh also failed to meet its revenue target in FY2025-26.

According to figures presented in parliament by the finance minister, total revenue collection during the fiscal year stood at Tk 4.10 lakh crore against a target of Tk 5.03 lakh crore.

This means around 81.6 percent of the annual target was achieved.

During the first six months of FY2025-26, NBR revenue collection increased by around 14 percent year-on-year.

Despite the growth, collection remained approximately Tk 46,000 crore below the target for the period.

Rising expenditure adds pressure
Economists say the revenue shortfall comes at a difficult time for the government, which is facing growing expenditure pressures.

The government has to finance higher spending on salaries, allowances and pensions, while also managing losses and subsidies in the energy sector.

At the same time, funds are required for development programmes and other public expenditures.

Economist Dr Zahid Hussain said both domestic and global factors are putting pressure on the economy.

“The economy is under pressure due to various global and domestic factors. Government expenditure is increasing, but revenue growth is not keeping pace.

There is already a shortfall in revenue collection, while global uncertainty has yet to ease,” he said.

He warned that the country could face an increasingly difficult economic situation unless appropriate measures are taken.

“The economy is already going through a difficult period. The major question is how long this situation will continue. Policies will have to be designed accordingly,” he said.

Dr Hussain also called for greater restraint in government expenditure and careful management of subsidy reductions.

He said increases in fuel prices can have widespread effects across the economy and stressed the need to prevent higher energy costs from creating additional inflationary pressure.

Experts call for stronger tax administration
Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), said achieving the revenue target would be challenging but improvements in tax administration could help narrow the gap.

She stressed the need to improve efficiency, transparency and accountability in revenue collection.

Instead of placing additional pressure on existing taxpayers, she said authorities should bring eligible individuals and businesses currently outside the tax net into the system.

She also called for simpler tax-payment procedures and greater use of technology in revenue administration.

Such measures, she said, could increase government revenue while limiting the need to impose additional tax burdens on ordinary citizens.