Recommendations for Budget 2020-21 in Light of the COVID-19 Crisis

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Bangladesh has been hit hard by the consequences of COVID-19. A low overall economic growth in the range of 2–3 per cent has been projected for the current (FY20) and next fiscal year (FY21) by the World Bank. Poverty incidence is to rise substantially—although expected to be temporary in nature—from around 20 per cent to more than 40 per cent.

The budget formulation for next fiscal year (FY21) is going to be a gargantuan challenge due to the uncertainty about economic activities, diminished capacity in revenue generation in the face a shrinking economy, subdued international trade, and provisioning of stimulus packages to facilitate economic recovery. In the light of this evolving situation a number of issues and suggestions are there for consideration in budget formulation.

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