Letter To the Editor
Check the loopholes of financial sector
Bangladesh is one of the countries those economies are growing fast. It has been entitled another emerging tiger. But, there are some setbacks in this progress. Banking sector has become one of the vulnerable sectors in the country due to financial scams. Cracks are appearing in the economy in the face of deepening crisis in the banking sector, widening gap between revenue collection and expenditure, and rising pressure on foreign exchange reserves. The economy is now under more stress than at any other point of time in the last 10 years.
The country is doing comparatively well in terms of economic growth and per capita income but it lags behind in private investment and industrialisation compared to that in some other countries. Weakness in revenue collection has become an insurmountable hurdle to development. The situation will turn bad if the government is to collect funds from other sources for financing. Financing from other sources, such as banks and foreign lenders will worsen the macroeconomic stability as the interest rates of those sources are very high.
To keep the economy, stable it is an all-out effort for accelerating revenue collection is important by expanding the tax base and curbing tax evasion.