Sunday, 22 September 2013

STATE’S INCOME INCREASED BY 10,7% IN 2014



To support fiscal policy of 2014, state’s income of 2014 was targeted at Rp1.662.5 trillion consisting of domestic income Rp1,661.1 trillion, and income from grant Rp1.4 trillion. Compared to APBN-P State Budget 2013, the amount showed increase of Rp160.5 trillion or 10.7%. The estimated state income of 2014 was based  on basic macro economic assumption of state’s income policy execution. This was data of Financial Notice and RAPBN 2014 obtained on Monday [26.8].

In the effort to meet national development target and meet economic challenges of 2014, the Government planned to adopt healthy and effective fiscal policy toward strengthening economic growth which was inclusive, sustainable and of high quality. In 2014 the Government planned to run the policy of deficit handling [not more than 1.5% against GDP] and to control primary balance by optimizing state’s income and improvement of expenditure quality. Besides, there would also be control of debt-to-GDP ratio through financing control based on credit, net negative inflow policy and use of credit resources productive means.

As main source of development financing, income from tax still had to meet many challenges and opportunities, particularly as related to tax resources from informal sector and UMKM small business. By mid 2013 the informal sector and UMKM had still not contributed significantly to state’s income, but was being jacked up to increase. Execution of PP no.46 year 2013 on income tax received by tax having certain Gross Income, was one of the key solutions of maximizing tax income in the future.

Meanwhile the effort to increase income from export tax in the years to come still had to face challenges from fluctuative international price of CPO and stipulation of export tax in line with industrial upstreaming level of CPO and their by-products. The objective of upstreaming was to increase added value and comparative advantage of CPO at home so for ex from export of processed products would increase. However the shift of exported products from CPO to upstream CPO and their by-products had the impact of lower export tax which had its impact on lessened potential of income from export tax.


Business News - August 30, 2013

No comments: