Govt reviewing funding for new pay scale

The government is evaluating the possibilities for financing and the calculation of the proposed new salary system, according to Finance Minister Amir Khosru Mahmud Chowdhury.

In an interview with the press on Monday (August 24), he clarified that the government cannot finance the full cost of the proposed salary system at one go. Regarding the possibility of implementing it in two phases, the minister replied that the issue is still under discussion.

According to the minister, increased imports have reduced the budgetary space of the government, and the tax-to-GDP ratio of Bangladesh is one of the lowest in the world. Steps have been taken to increase revenue collection and improve the performance of the NBR, he further said.

He also mentioned that alternative sources of financing would be explored to prevent the government from borrowing from banks too much, which could leave limited scope of financing for the private sector.