Bangladesh’s National Board of Revenue (NBR) has set a target to increase the country’s revenue-to-gross domestic product (GDP) ratio to 10.7% by fiscal year 2028-29 (FY29) as part of a medium-term strategy to strengthen domestic resource mobilisation and support sustainable economic growth.
The target has been outlined in the government’s Medium-Term Macroeconomic Policy Statement for FY2026-27 to FY2028-29, which projects the revenue-to-GDP ratio to rise to 10.2% in FY27, 10.5% in FY28, and 10.7% in FY29.
According to the policy statement, improving the revenue-to-GDP ratio is essential for sustaining Bangladesh’s development momentum, financing public investment and addressing structural weaknesses in the economy. The document notes that Bangladesh’s revenue performance remains among the lowest compared to many peer economies.
The revenue-to-GDP ratio stood at 8.3% in FY24 before declining to 8% in FY25, primarily due to structural challenges in tax administration, tax exemptions on essential commodities introduced to ease inflationary pressures and lower import-related tax collection amid global economic uncertainties.
The government expects NBR tax revenue, which accounted for 6.7% of GDP in FY25, to increase steadily to 8.8% in FY27, 9.1% in FY28 and 9.3% in FY29.
The policy statement also notes that total government revenue includes foreign grants, while non-NBR tax revenue is projected to remain between 0.3% and 0.4% of GDP over the three-year period.
Officials believe stronger domestic revenue mobilisation will reduce dependence on deficit financing and bank borrowing, creating greater fiscal space for development spending. The strategy is also expected to complement the government’s contractionary monetary policy by helping contain inflation and improving the economy’s resilience against both domestic and external shocks.
The medium-term fiscal roadmap places significant emphasis on improving tax administration, expanding the tax base and strengthening revenue collection as key priorities for maintaining macroeconomic stability and supporting Bangladesh’s long-term economic development.
