"The Rp32.7 trillion drop came from the declining target of total tax revenue at Rp37.4 trillion," Finance Minister Sri Mulyani Indrawati stated during a meeting with the budget committee of the House of Representatives here on Friday.
The total tax revenue target was slashed to Rp1,444.5 trillion, from the earlier proposal of Rp1,481.9 trillion, after considering the declining realization, as of August 2020, and projected lower revenue until the year-end.
"The target in the 2021 state budget plan conveyed by the president with lower basis in 2020 has resulted in a high implicit growth of nearly 18 percent," she pointed out.
Of the total tax revenue, the government cut revenue from tax by Rp38.9 trillion to Rp1,229.6 trillion, comprising Rp4.6 trillion from oil and gas, Rp20.7 trillion from non-oil and gas, Rp27.5 trillion from value-added tax, and Rp4.7 trillion from other taxation.
Revenue from customs has increased Rp1.5 trillion, she remarked.
Indrawati noted that the target for non-tax revenue had risen by Rp4.7 trillion to reach Rp288.2 trillion, from the earlier target of Rp283.5 trillion in the 2021 state budget plan.
The non-tax revenue from oil resources has increased by Rp1.92 trillion; gas resources, up Rp630 billion; Domestic Market Obligation (DMO) rose Rp130 billion; and ministries/institutions increased by Rp2 trillion. Related news: Revenues in 2020 state budget draft reach Rp2,221.5 trillion
Related news: 2020 State budget deficit to be Rp307.2 trillion
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Translator: Astrid FH, Sri Haryati
Editor: Suharto
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