Jakarta, Aug 7 (Antara) - The government predicts that tax revenues will drop by Rp219 trillion from the targeted Rp1,539.166 trillion in the revised state budget 2016 this year, thus posing potential to disturb the budget deficit performance.
Therefore, it is planning to cut its expenditure by about Rp133.8 trillion, consisting of Rp65 trillion of the budget for ministries/state institutions and Rp68 trillion of the spending for transfer to regions.
Chief Economic Minister Darmin Nasution said the state revenues up to the end of the year would not meet target set in the revised state budget. So, adjustment to the government expenditure should be made.
"We have discussed shortfall in a number of revenue sources," Darmin said after attending a cabinet plenary meeting chaired by President Joko Widodo (Jokowi) on Wednesday, August 3.
Earlier Finance Minister Sri Mulyani Indrawati predicted that tax revenues would fall Rp219 trillion short of target and the shortfall is potential to obstruct budget deficit performance.
As a result, the ministry proposed a cut of around Rp65 trillion in spending by ministries/state agencies and of around Rp68 trillion in transfer to regions.
"The Finance Ministry, the office of the Coordinating Minister for Economy and the National Development Planning Board (Bappenas) would comb spending without derailing priority programs," Sri Mulyani said.
In the budget cut plan, the government spending for priority program, such as social aid to eliminate poverty and create equitable distribution of income, would not be included.
According to Darmin Nasution, pruning is made only in spending for not important programs such as official trips.
Darmin, however, could not yet give detail on the possibility for further revision of the 2016 state budget. After all the 2016 state budget was revised and approved by the House of Representatives (DPR) only recently.
"I am not sure about the rule of game, whether it is to be brought to the House of Representatives (DPR) or not. No discussion on it at the cabinet meeting (on August 3)," he said.
Finance Minister Sri Mulyani said on the other hand that adjustment to government's spending to maintain budget deficit would be made without proposing another revision of the revised 2016 state budget (APBNP 2016).
Based on Article 26 of the APBNP 2016 Law, the government could make adjustment to its budget without revising the APBNP 26, Sri Mulyani said on Friday (Aug 5).
Article 26 point 1 of the law regulates that if the state revenues are not adequate to meet the state expenditure, the shortfall could be met with the budget surplus (SAL) funds, the issuance of government bonds (SBN) or with the adjustment of state expenditures.
She said that the adjustment to the government spending will be made based on the law so that the management of the state financing would be effective, transparent and accountable based on the principles of justice and propriety.
The government has to cut spending to prevent budget deficit from widening and exceeding the limit allowed by the law at three percent of the gross domestic product (GDP).
The minister said the macro targets would remain the same with exception of the target for the rupiah exchange rate, which is to be amended from 13,500 to 13,300 per U.S. dollar.
"The deficit is estimated to be 2.5 percent widening from 2.35 percent of the GDP that requires additional financing of Rp17 trillion," she added
Sri Mulyani said she is optimistic the deficit of the 2016 state budget is still within a safe corridor although with additional financing.
"With the adjustment, we hope deficit would not widen. We still see that room could still be controlled within the deficit corridor," Sri Mulyani said after the closing ceremony of the 12th World Islamic Economic Forum (WIEF) in Jakarta on Thursday.
With the cut, the state budget is still estimated to have a deficit of 2.5 percent of the GDP , higher than the target of 2.35 percent set in the 2016 budget. Therefore, there is an additional financing of Rp17 trillion.
The minister repeated statement that the budget for priority projects or program would not be cut.
"The president has seen there is ample room for efficiency such as through cut in cost of travels or non priority operational costs. Therefore , there is no need to cut spending for priority programs such as infrastructure projects," she said.
Legislator Juliari P Batubara agreed to the government¿s step to cut the budget as it is taken in an effort to overcome deficit.
"We acknowledge that the APBNP tax revenue is not realistic. This means that if not cut it would widen the deficit," Juliari said in Semarang Central Java on Saturday.
The government has set a tax revenue target in the APBNP 2016 at Rp1,539.166 trillion but it is predicted that this year¿s target could not be met, with an estimated shortfall of Rp219 trillion.***3***(A014/f001 )(T.A014/A/A. Abdussalam/F. Assegaf) 07-08-2016 10:53: |
Tidak ada komentar:
Posting Komentar