"This I think is a key point for the Finance Ministry, the government, how to pursue the target set in Presidential Regulation No. 72 of 2020 in the remaining three months," Head of the Fiscal Policy Agency of the Finance Ministry Febrio Nathan Kacaribu stated here during a virtual discussion on Friday.
As of August, tax revenue had only reached 56.5 percent of its target, or some Rp676.9 trillion, contracting 15.6 percent year-on-year (yoy) from the Rp802.5-trillion revenue during the corresponding period of 2019.
Kacaribu made assurance of the ministry's commitment to boost revenue despite a likelihood of missing the target amid the pandemic.
"It would be very challenging, as it (the tax revenue) can be lower than the target. However, we continue to push it, so that we will not see a steep shortfall," he noted.
Kacaribu believes that despite the pressures to increase tax revenue, the government’s confidence on the budget deficit would remain lower than the target of 6.34 percent of the gross domestic product (GDP).
The country’s fiscal deficit reached Rp500.5 trillion (US$33.96 billion) as of August, or 3.05 percent of the GDP.
The government projects the budget deficit to touch 6.34 percent this year, up from the initial deficit cap of three percent, as it allocated Rp695.2 trillion worth of stimulus to rescue the economy.
The Finance Ministry’s data showed that the country had accrued Rp1.03 quadrillion in state revenue as of August, marking a reduction of 13.1 percent yoy following a drop in both tax revenue and non-tax income. Related news: Sri Mulyani expects economic improvement to shore up tax revenue
Related news: Economist envisages 2020 tax revenue to touch Rp1,223.2 trillion
EDITED BY INE