Bangladesh Plans Big Income Jump, Targets Economic Stability
Bangladesh plans to raise its average per capita income by more than 50 percent. The government aims for USD 4,591 by the 2030-31 fiscal year. This is a significant increase from USD 2,958, recorded recently.
The General Economics Division (GED) of the Ministry of Planning released this goal. It is part of a report called “Transforming Economy from Fragility to Prosperity.” This five-year plan covers the fiscal years 2026-27 to 2030-31.
The plan also targets lower inflation. The government wants to reduce inflation to 5 percent by 2030-31. Inflation was 8.32 percent in July this year. Boosting economic growth is another key aim. GDP growth is set to reach 8.5 percent by 2030-31, up from 6.5 percent currently.
The GED report outlines three phases for economic change. The first year focuses on recovery and stability. This means controlling inflation and improving banking. The first three years will work on restoring stability. This includes increasing government revenue and managing debt.
The next two years, from the third to fifth year, aim for faster growth. They will focus on more investment and creating jobs. This will help the economy to strengthen.
The banking sector will see major reforms. The plan will tackle non-performing loans. It will also strengthen supervision and good governance. High-risk banks and loan defaulters will be priorities in the first year. Later years will improve risk management and financial safety.
Reforms will also affect how the government collects money. Revenue policy and collection will become separate functions. The plan proposes a single VAT rate and fewer tax breaks. It also aims to include small businesses in the tax net. The goal is to raise the tax-to-GDP ratio to 10 percent by 2030-31. Bangladesh currently has one of the lowest ratios globally.
The government also prioritizes transport and communication. It plans many large projects. These include new and electrified railway lines. There are also plans for metro and commuter rail systems in cities.
The plan also addresses unemployment among young people. It will provide funding for young and women entrepreneurs. Good governance is a main theme of the report. It states that clear rules and honesty are vital for a strong economy.
M Masrur Reaz, a policy expert, shared his view. He said the plan shows the government’s vision. But he also stressed the need for clear, time-bound actions. These are needed especially for jobs, taxes, and banking. He noted that the economy faces challenges like reliance on garment exports and low investment.
