Every country in the world is reeling from impacts of the pandemic, and they have also implemented extraordinary policies in utilizing their state budget.
Jakarta (ANTARA) - Nations worldwide are currently struggling to recover their state budget after being channeled for handling the COVID-19 pandemic, according to Finance Minister Sri Mulyani.

"Every country in the world is reeling from impacts of the pandemic, and they have also implemented extraordinary policies in utilizing their state budget," Mulyani remarked during the Tax Directorate General (DJP) IT Summit 2021 online event here on Wednesday.

To this end, Mulyani expressed her steadfast commitment to continuing to coordinate with tax authorities worldwide to formulate the most apposite policy.

The minister believes Indonesia's state budget should be salvaged in the medium to long term after striving incessantly for two years to handle the COVID-19 pandemic and to work towards economic recovery.

Mulyani emphasized that boosting the nation's revenue, especially taxes, was one of the key factors in fiscal consolidation and state budget recovery.

Hence, the minister deems reformation in taxation as being important.

"We all know that the pandemic-induced economic shock is one of the important triggers. However, the other factor that has to become an element in designing taxation reformation is the utilization of digital technology," the minister stated.

The minister believes that reforming the taxation policy and administration were two key factors in taxation reformation, especially for handling the pandemic and the technological revolution.

In addition to boosting national revenue, Mulyani noted that the government should conduct various reforms in the nation's finance sector, including by evaluating spending or through better spending as well as via innovative state financing to recover the state budget.

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Translator: Agatha Victoria, Fadhli R
Editor: Rahmad Nasution
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