Bangladesh Cuts Budget Deficit Target to Lowest Since 2015
- Finance Minister proposes raising income tax for the wealthy
- VAT rates increase, government plans to slow spending
Sheikh Hasina
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Bangladesh plans to cut the budget deficit to the lowest in more than a decade as Prime Minister Sheikh Hasina’s government slows spending and raises taxes amid a steady erosion of foreign reserves.
The government plans to lower the deficit to 4.6% in the new fiscal year starting in July — the lowest since 2015, from a 5.2% target currently, according to Finance Minister Abul Hassan Mahmood Ali.