In addition, the implementation of current mega-projects, and completion of Special Economic Zones (SEZ)s, SMEs, and IT Industrial Parks will add momentum to growth potential. Side by side, entrepreneurship, and investment promotion incentives should significantly contribute to increases in employment and incomes, support the further reduction of poverty and minimize inequalities in access to capital and essential commodities both in rural and urban areas. The stimulus packages should be enhanced to 8% of GDP with further efficiency in reaching out to targeted recipients.
The budget may envision GDP growth of 7.5% for the current year, keeping the budget deficit within 5.5% of GDP, focused thrust on domestic resource mobilization for achieving a tax-GDP ratio at 10%, with broader coverage, improved automation, extensive inter-agency coordination, and effective accountability. It is necessary to ensure the current recovery and stabilisation phases will continue to spur economic efficiency and broaden competitiveness. This will also facilitate a seamless transition to diversifying sources of growth and prepare the economy to steer the post-LDC graduation challenges.
For greater effectiveness and impact, it is necessary to upgrade current budgetary models and sector assessment, improved monitoring and evaluation tools, and strengthened project and program implementation. Moreover, resilient fiscal and monetary frameworks should be directed to sustained control of inflation and facilitate consumer access to both food and non-food essential consumer items. Addressing issues relating to debt management, weak disbursement, cost overruns, and expenditure rationalisation will ensure sustained economic resilience. This will strengthen the potential to effectively cushion external and internal shocks.