Previous govts inflated GDP growth data for political gain: PM’s adviser

Prime Minister’s Finance and Planning Adviser Rashed Al Mahmud Titumir on Sunday alleged that previous governments had inflated GDP growth figures and the size of the economy for political gain, adding that the interim government had begun correcting those distortions.

“We have already started reforming the way past governments politically exaggerated GDP growth rates and the overall size of GDP,” he told reporters after a meeting with the Revenue Collection Taskforce at the National Board of Revenue (NBR).

Referring to findings of the white paper preparation committee, he said data had been manipulated across different sectors of the economy.

“You have already seen through the white paper committee how data were distorted in every sector of the economy. Once we determine the real size of GDP, the tax-to-GDP ratio will also become more realistic,” he said.

Titumir alleged that the previous government had not only presided over large-scale looting but also manipulated fiscal records to present an inflated picture of revenue.

“It was not just looting; there were also major discrepancies on paper. In recent years, before the interim government took office, the previous government consistently reported revenue figures that had no relation to actual collection,” he said.

He said anyone seeking evidence of the mismatch could verify it through iBAS++, the government’s public financial management software.

“If you look into iBAS++, you will find that the revenue figures shown during the tenure of the previous government do not match the actual numbers,” he added.

Highlighting broader economic challenges, Titumir said the interim government had inherited a severely weakened economy, alongside one of the lowest tax-to-GDP ratios in the world.

“Bangladesh’s economy has collapsed — there is no point denying that. We have inherited a devastated economy,” he said.

“At the same time, we have been left with a tax-to-GDP ratio of below 7.0 per cent, one of the lowest in the world. On top of that, the conflict centred around West Asia and Iran has added further pressure. It is like a fresh blow to an already battered economy. We now have to find a way out,” he said.

On revenue collection for the current fiscal year, Titumir expressed optimism that the government would perform better in the final quarter.

“Over the next three months, we hope to achieve a larger portion of the target in the fourth quarter than in comparable periods in the past. That is the immediate objective,” he said.

He added that the government aimed to surpass last year’s revenue performance and gradually raise the tax-to-GDP ratio in line with its longer-term targets.

“Our second objective is to exceed last year’s level of target achievement by a significant margin. That will help us move the tax-to-GDP ratio towards 10 per cent initially, and eventually to 15 per cent by 2035,” he said.

Md Abdur Rahman Khan was also present.

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