Bangladesh, June 17 -- Bangladesh's FY2026-27 budget sets out revenue targets that may prove difficult to achieve given the country's longstanding challenges in tax mobilisation and reform implementation, according to Fitch Ratings.

In a report released on 16 June, the global credit rating agency noted that the budget aims to raise the revenue-to-GDP ratio to 10.2 per cent from around 8 per cent in FY2025-26. If realised, this would represent the highest ratio recorded since 1993.

Fitch identified revenue collection as the principal fiscal challenge, highlighting the budget's target of 18 per cent year-on-year growth in nominal revenue alongside a 19 per cent increase in expenditure.

The agency said proposed measures-including simplif...