Dhaka, June 16 -- Bangladesh's FY27 budget, the first under the newly elected government, has set revenue targets that may prove difficult to achieve given the country's weak track record in tax mobilisation and implementing reforms, according to Fitch Ratings.

In a statement on Tuesday, the global rating agency said the budget aims to raise the revenue-to-gross domestic product (GDP) ratio to 10.2 percent from about 8 percent in FY26, which would be the highest level since 1993.

Fitch described revenue collection as the main fiscal challenge, noting that the budget targets nominal revenue growth of 18 percent year-on-year while proposing a 19 percent increase in expenditure.

Measures announced in the budget include simplifying tax pro...