"To achieve the aforementioned development goals, it is essential to increase state revenues in 2022 to Rp1,840.7 trillion," President Joko Widodo noted in his state budget speech on the 2022 fiscal year at the Parliamentary Complex in Jakarta on Monday.
State revenues sourced from tax revenues are targeted to increase to Rp1,506.9 trillion and to Rp333.2 trillion from non-tax state revenues.
The mobilization of state revenues is conducted through optimizing tax revenues as well as through management reforms of non-tax state revenue, according to the president.
"We need to continue the tax reforms in order to promote independence in financing the development," the president noted.
Widodo remarked that tax reforms were conducted through expanding the tax base, improving taxpayer compliance, and enhancing tax management and administration in order to increase the tax ratio.
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Furthermore, provision of various proper and measurable tax incentives is expected to encourage acceleration of recovery and improve national investment competitiveness as well as spur economic transformation.
"The tax reforms aim to ensure justice for all the people of Indonesia," the president remarked.
Meanwhile, continued efforts are being made to increase non-tax state revenues by improving planning and report processes through the application of integrated information technology; strengthening management and control of non-tax state revenues; optimizing asset management; intensifying collection and settlement of non-tax state revenue arrears; and encouraging service innovation while still maintaining service quality and affordability.
The budget deficit of 2022 is planned at 4.85 percent of the gross domestic product (GDP), or Rp868.0 trillion. The budget deficit of 2022 will be financed by utilizing financing sources that are secured and prudently managed by maintaining fiscal sustainability.
The president affirmed that the pledge to maintain fiscal sustainability is being fulfilled to keep the debt ratio within controlled limit.
"The deficit plan of 2022 plays an important role in achieving fiscal consolidation, given that the budget deficit for 2023 is expected to return to the highest level of three percent of the GDP," he stated.
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Translator: Adimas R, Azis Kurmala
Editor: Rahmad Nasution
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