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The role of fiscal sustainability in enhancing sustainable economic growth in South Asia: the case of Bangladesh

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  • Tapan Kumar Sarker

    (PhD (Australian National University), Department of International Business & Asian Studies, Griffith Asia Institute, Griffith University, QLD 4111, Australia)

Abstract

The present paper examines the role of fiscal sustainability in achieving sustainable economic growth in the context of South Asia. Excessive government debts have long-term implications and can cause serious intergenerational consequences. In this paper, the role of fiscal sustainability is discussed and the concept of a "just tax system" is analysed. Such a tax system can play an important role in achieving economic growth that is sustainable, rather than being focused on short-term gain. Using the case of Bangladesh, the paper highlights some of the key imminent challenges to transforming a tax system to be more equitable and fair. It finds that current taxation systems are based on short-term frameworks and can leave future generations with the ultimate burden of dealing with the limitations of those systems. Based on the case study, which supports those facts, policymakers in South Asian countries could integrate longterm measures to ensure fiscal sustainability in achieving sustainable economic development.

Suggested Citation

  • Tapan Kumar Sarker, 2015. "The role of fiscal sustainability in enhancing sustainable economic growth in South Asia: the case of Bangladesh," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 22(1), pages 143-164, June.
    • Handle: RePEc:unt:jnapdj:v:22:y:2015:i:1:p:143-164
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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