The increase in the non-tax state revenue target is aimed at offsetting the decline in the previous target of tax receipts at Rp963.7 trillion, acting chairman of the ministry`s fiscal policy board, Bambang Brodjonegoro said here on Wednesday.
"Tax receipts decline due to declining economic activities. Taxes are related to the economic conditions," he said.
Earlier, Finance Minister Agus Martowardojo said the target of non-tax state revenues would likely increase by Rp20 trillion from Rp278 trillion set in the 2012 state budget.
"Non-tax state revenues will increase by more than Rp20 trillion," he said.
He said tax receipts would likely fall as the economy was expected to grow 6.5 percent instead of 6.7 percent as originally forecast.(*)