Sounding a note of caution, EAC-PM member Rathin Roy on Monday urged the government to issue a white paper on medium-term fiscal framework, arguing that it would be difficult to meet the Budgetary tax collection target for 2019-20.
Roy, while speaking at an event here, also expressed his reservations over the government’s decision to start raising a part of its gross borrowing programme from external markets in foreign currencies.
“Given this revenue shortfall, the expectation from the revenue department is the tax/GDP ratio will rise by more than one per cent of the GDP, I don’t know how this is going to happen.
“...My plea to Government is to immediately issue a white paper if you like that incorporates medium term fiscal framework for next 3-5 years,” he said.
According to the Budget document, the Government aims to collect $370 billion as taxes in the current fiscal.