2021 Development Activities Sourced From Independent Source of Revenue
President Joko “Jokowi” Widodo said that development activities in 2021 will be mainly sourced from independent source of revenue from state revenue amounting to Rp1,776.4 trillion.
“Primarily from tax revenue of Rp1,481.9 trillion and Non-Tax State Revenues (PNBP) of Rp293.5 trillion,” said the President when delivering the Government Statement on the Bill on the State Budget for the 2021 Fiscal Year and Its Financial Note before the House of Representatives (DPR RI) Plenary Session, Friday (14/8), at the Nusantara MPR/DPR/DPD RI Building, Senayan, Jakarta.
On the side of taxation, the Government continues to expand tax base and to improve tax administration to increase and explore potential sources of revenue.
“In addition, the implementation of tax omnibus law and provision of proper and measurable tax incentives are expected to boost investment and national competitiveness, to accelerate economic recovery post COVID-19 pandemic, and to drive economic transformation,” he said.
On the excise side, integrated excise supervision system and excise extensification will be improved to control negative externality.
In 2021, the Head of State pointed out that measures to optimize Non-Tax State Revenues (PNBP) are taken, among others, by increasing quantity and improving quality of services, innovation of services, expansion of joint audit objects, effective planning of oil and gas lifting, and efficiency of oil and gas operational cost.
“Improvement of planning and reporting of PNBP continues to be strengthened by adoption of an integrated information technology system,” he added.
According to him, during the transition period of the 2021 RAPBN with projection of State Revenues amounting to Rp1,776.4 trillion and State Expenditures amounting to Rp2,747.5 trillion, Budget Deficit is estimated to reach Rp971.2 trillion or equal to 5.5 percent of GDP.
“The 2021 budget deficit will be financed by making use of secured financing sources that are prudently managed,” he said.
Debt financing, according to the President, is responsively conducted to support counter-cycle policies and accelerate socio-economic recovery. He added that the Government consistently maintains prudent debt management.
“Deficit financing of the 2021 State Budget Bill will be carried out through cooperation with monetary authority, while upholding the principles of fiscal discipline and monetary policy discipline as well as maintaining the integrity, credibility, and market trust of the Government securities,” he said.
The Government, the President continued, is committed to maintaining fiscal sustainability to keep debt ratio within controlled limit.
“The Government also continues to increase efficiency of debt cost through market deepening, expansion of investor basis, improvement of market infrastructure of Government Securities, diversification, and issuance of regional bond or sukuk,” he said. (TGH/MAY/EN)
Reviewed by: Mia Medyana B.