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Sri Mulyani Don't Want State Budget to Become Source of Issue after COVID-19

17 December 2021 14:31 WIB

TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati said that restructuring the State Budget or APBN must be carried out in a measurable and gradual way so that it will not be a source of problems in the future.

"We don't want the State Budget to become a source of problems after Indonesia manages to handle Covid-19 and stabilize the social and economic sector," said Sri in the dissemination event of the Harmonized Tax Law broadcasted online on Friday, December 17, 2021.

During this lingering pandemic, Sri explained that government spending was used to finance various vital programs for the community, including health programs, social assistance, MSME assistance, and other expenditures aimed at strengthening the country's economy.

The expenditure, she added, surely needed to be funded, such as through tax and non-tax revenues. As Indonesia is still under pressure, the country's budget deficit rose above three percent. The figure could be lowered gradually and reach below three percent by 2023.

"The goal is for the community to recover first, the economy to be strong again, then the state budget to be healthy again," Sri underlined.

One of the government's efforts to improve state finances was working with the House of Representatives (DPR) to formulate provisions of tax reform through the Harmonized Tax Law.

"When it comes to taxes, people immediately think that it's a burden. The Harmonized Tax Law is, in fact, sides with the people, especially those poor people and MSMEs. The DPR won't let the government make policies that burden the community," said Sri Mulyani.

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