The post-flood showdown in the economy has caused a shortfall in revenue collection during the first seven months of the current fiscal by Tk 804. The total receipt till January stood at Tk 7,621.86 crore which interestingly enough bettered tire collection figure: of the’ corresponding period of the last financial year by Tk 292.20 crore. One recalls that revenue receipt in the first financial year under the present government fell short of the target largely because of the car dealers obtaining legal injunctions on import duty payments. In other words, in spite of the century's worst floods we have not fared too badly in terms of revenue collection, which in turn means that tax administration performed somewhat better than in the previous year. This gives cause to hope that with redoubled efforts in the remaining five months of the current fiscal we should be able to make up for the 9.4 per cent collection deficit to close the year with a tally ofTk 15,700 crore as targeted.

There is, however, one likely variable, a much-dreaded roadblock, that needs be taken into account and headed off if we are to meet the original revenue target for the current fiscal. If we cannot rid ourselves of hartal before long the revenue shortfall will keep on increasing bursting the dam of a balanced budget' in end.

Floods left a ringing message for the government that it exercised an effective control over current expenditure in order that the process of economic recovery were helped, not hurt. But it seems the government could not avoid borrowing from the banking system rather heavily from July to November, 1998, with the over-all figure increasing by Tk 740 crore from Tk 121 crore recorded in the corresponding period of the previous fiscal.

The tendency to borrow from banks to meet current account deficits is far from healthy. This stands in contrast to the fresh levies of Tk 300 crore the 'government had imposed due to the flood exigency.' The benefit from low international oil prices also accrued to the government. We wonder if there has been any laxity on the austerity measures announced in the immediate aftermath of the floods.