State of the Bangladesh Economy in FY2015-16: Second Reading CPD's Budget Recommendations

In: http://hdl.handle.net/11540/10299

Abstract

The present report is the second instalment of the state of the Bangladesh economy in FY2016 prepared under CPD's flagship programme titled Independent Review of Bangladesh Development (IBRD). The primary objective of this report is to put forward a set of recommendations in the context of the national budget for FY2017. This report will be followed by a comprehensive analysis of the Bangladesh economy covering FY2016, to be released prior to the presentation of FY2017 budget. The final instalment of this year's IRBD will come up with CPD's reactions to the FY2017 budget once it is presented on June 2016. The present report has been prepared on the basis of analysis of most recent data relating to key macroeconomic, fiscal and monetary variables. The report has also drawn from the recommendations voiced at the pre‐budget dialogue organised by the CPD in Bogra that focused on development of small and medium enterprises (SMEs). Yet another consultation was organised by the CPD with young entrepreneurs and professionals, and their views have also been reflected in this report. CPD had conducted an online opinion survey through Facebook and email platforms to get feedbacks from citizens on expectations from FY2017 budget. This was the first time for the CPD, and views of the participants of this survey have been incorporated in this report. The report has two parts. Section 2 of this report presents a brief overview of the macroeconomic developments in FY2016 which will inform the upcoming budget. In Section 3, recommendations in the context of the upcoming national budget will be presented under six broad categories – fiscal framework, revenue mobilisation, public expenditure, financing of budget deficit, fiscal measures, and economic reforms and transparency in budgetary system. Section 4 closes the report with some concluding remarks.