State Expenditure for 2010 Increased Rp. 3.8 Trillions

State expenditure for 2010 was set at Rp. 1.009.5 trillion or increased Rp. 3.8 trillions from 2009 assumption. The expenditure consisted of central government’s expenditure of Rp. 699.7 trillion, or rose from this year’s assumption at Rp. 691.5 trillions. Allocation to regions was set at Rp. 309.8 trillions, or rose slightly from the assumption in APBN-P of 2009 at Rp. 309.3 trillions. Vice Chairman of the Budget Committee of the House, Harry Azhar Aziz, said.

In line with increase of allocation of state expenditure, revenue must also increase so that deficit of next year would not be too much increased from assumption in RAPBN of 2010, which was 1.6% of Gross Domestic Product (GDP), or equivalent to Rp. 98 trillions. Increase in state expenditure was also to compensate for increase of target of economic growth. Increase of target of economic growth would still require some preconditions, for example, investment expenditure has to be increased. It means that expenditures on capital and goods must be increased, and so is consumptive spending.

The House and the Government agreed to increase target of tax revenue for 2010 by Rp. 6 trillions in order to support economic growth. In RAPBN of 2010, tax revenue was set at Rp. 645 trillions with assumption that economic growth is 5%. This assumption is higher if compared to target in APBN-P of 2009 at Rp. 652.12 trillions.

Meanwhile, Commission XI, in a meeting with the Minister of Finance, agreed to increase economic growth rate in RAPBN of 2010 from 5% to 5.5%. With the above target, government’s expenditure would be more expansive. As a consequence, the Directorate General of Taxation must also do revision or re-calculation of target of tax revenue for 2010 from the previously Rp. 702 trillions.

The Minister for National Development Planning/Head of the National Development Planning Board said that 5.5% economic growth rate was potential to reduce unemployment to 8.9 millions or 7.7% from total workforce. Based on data of Central Board of Statistics, in February 2009, open unemployment rate stood at 9.26 million or 8.14%.