According to media reports, the finance minister is set to announce a big budget this week keeping the election in mind. He plans to reduce the tax rate at both personal and corporate levels. The government wants to spend a lot of money in several infrastructure and social safety projects but how can it fund its own spending programmes if it decreases taxes? Apparently, VAT will be used to support increased spending. But this will clearly put pressure on the people belonging to the low-income group. One report says the government will primarily focus on the first six months of the next financial year, with the election in focus, but such a mindset is faulty because the public will suffer in the long run.

Khairul Alam By e-mail