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Chapter 6

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Afrin Zaman Orin
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Chapter 6

Uploaded by

Afrin Zaman Orin
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 6: Recommendation and Conclusion

6.1 Recommendation

Here are some recommendations to enhance the fiscal policy in Bangladesh:

1. Strengthen Revenue Mobilization

Broaden the Tax Base: Implement measures to include more taxpayers, especially in the informal
sector, to increase tax revenue.

Improve Tax Administration: Improve the efficiency of tax collection processes and reduce tax
evasion through better enforcement and the use of technology.

Introduce Progressive Taxation: Ensure that higher-income individuals and corporations pay a
fair share of taxes to reduce income inequality.

2. Enhance Public Expenditure Management

Prioritize Key Sectors: Allocate more resources to critical sectors such as education, healthcare,
and infrastructure to promote sustainable development.

Improve Efficiency: Ensure that public funds are used efficiently by reducing wastage and
corruption through transparent procurement processes and regular audits.

Performance-Based Budgeting: Implement performance-based budgeting to ensure that funds are


allocated based on the effectiveness and impact of programs.

3. Sustainable Debt Management

Maintain Debt Sustainability: Keep public debt within manageable limits to avoid excessive
fiscal deficits and ensure long-term economic stability.

Diversify Funding Sources: Explore alternative funding sources such as public-private


partnerships (PPPs) and international grants to reduce reliance on debt.
Regular Monitoring: Continuously monitor debt levels and repayment schedules to avoid
potential debt crises.

4. Promote Economic Diversification

Support SMEs: Provide incentives and support for small and medium-sized enterprises (SMEs)
to diversify the economy and create jobs.

Encourage Innovation: Invest in research and development (R&D) and promote innovation to
enhance productivity and competitiveness.

Develop New Sectors: Identify and develop new sectors with growth potential, such as
information technology, renewable energy, and tourism.

5. Enhance Social Protection Programs

Expand Coverage: Increase the coverage of social protection programs to include vulnerable and
marginalized groups.

Improve Targeting: Use data and technology to better target beneficiaries and ensure that
assistance reaches those who need it most.

-Sustainable Funding: Ensure that social protection programs are sustainably funded through
dedicated revenue streams.

6. Strengthen Institutional Capacity

Capacity Building: Invest in capacity building for government officials to improve policy
formulation and implementation.

Institutional Reforms: Implement institutional reforms to enhance the efficiency and


effectiveness of public institutions.
Stakeholder Engagement: Engage with stakeholders, including the private sector, civil society,
and development partners, to ensure inclusive and participatory policy-making.

By implementing these recommendations, Bangladesh can strengthen its fiscal policy


framework, promote sustainable economic growth, and improve the overall well-being of its
citizens.

6.2 Conclusion

Bangladesh's fiscal policy has been the foundation of its economic strategy, playing an essential
role in driving growth, maintaining macroeconomic stability, and reducing poverty. Over the
years, the government has implemented various measures to enhance revenue mobilization,
manage public expenditure efficiently, and maintain sustainable debt levels. These efforts have
contributed to significant improvements in infrastructure, education, healthcare, and social
welfare.

However, challenges remain, including the need for further tax reforms, better targeting of social
protection programs, and addressing external economic shocks. The government's commitment
to continuous economic reforms and prudent fiscal management will be crucial in overcoming
these challenges and ensuring long-term economic stability.

In summary, while Bangladesh's fiscal policy has made commendable strides, ongoing efforts to
refine and adapt these policies will be essential to sustain economic growth and improve the
quality of life for its citizens. The focus should remain on inclusive growth, efficient resource
allocation, and maintaining fiscal discipline to navigate future economic uncertainties
successfully.

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