Budgetary Adjustments to Deal with the Postponement of the New VAT Law
Postponement of 2012 VAT Law requires significant early adjustments in the FY18 Budget to tap additional sources of revenue and expenditure saving to increase fiscal space. Automation, process simplification, and dispute resolution may bring additional tax revenues in the immediate future. These are elaborated in an earlier note dated July 22, 2017. This note focusses on developments in non-development capital expenditures, loans and advances, and block allocations in the revenue budget that can generate significant expenditure saving in addition to the usual ADP implementation shortfall. These can be complemented by reforms that will help enhance concessional external financing to ease the pressure on the relatively more expensive domestic financing of the budget deficit.
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| Format: | Policy Note biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017-07-24
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| Subjects: | BUDGET, EXPENDITURE ADJUSTMENT, REVENUE, VAT REVENUE, VALUE ADDED TAX, BUDGET DEFICIT, PUBLIC EXPENDITURE, REVENUE MOBILIZATION, CONCESSIONAL FINANCE, EXTERNAL AID, |
| Online Access: | http://documents.worldbank.org/curated/en/247101535709129997/Bangladesh-Policy-Note https://hdl.handle.net/10986/30407 |
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| Summary: | Postponement of 2012 VAT Law requires
significant early adjustments in the FY18 Budget to tap
additional sources of revenue and expenditure saving to
increase fiscal space. Automation, process simplification,
and dispute resolution may bring additional tax revenues in
the immediate future. These are elaborated in an earlier
note dated July 22, 2017. This note focusses on developments
in non-development capital expenditures, loans and advances,
and block allocations in the revenue budget that can
generate significant expenditure saving in addition to the
usual ADP implementation shortfall. These can be
complemented by reforms that will help enhance concessional
external financing to ease the pressure on the relatively
more expensive domestic financing of the budget deficit. |
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