Sri Mulyani Conveys The Reality To Students About The State Budget Which Is Overdrawn By IDR 1,000 Trillion: We Finance It Through Debt

Minister of Finance Sri Mulyani (Photo: screenshot of the Ministry of Finance Youtube)

JAKARTA - Minister of Finance, Sri Mulyani, participated in the activities of the Ministry of Finance Teaching by giving lectures to school-age students about the importance of the role and function of the State Budget in everyday life.

According to the Minister of Finance, the state has a great responsibility to bring prosperity to the people. In fact, not infrequently these efforts must be accompanied by the consequences of higher State Budget expenditures compared to the revenue sector received.

“If the revenue is less while the expenditure is more, it means that we have a deficit. So, the shortfall was financed using debt. Now, how much is the debt from anywhere, it's all discussed by the government together with the House of Representatives to be enacted into the State Budget Law", he said through a virtual channel, Tuesday, November 9.

However, the state treasurer ensures that debt withdrawals are carried out by taking into account the principles of good management.

"If you are worried that you have a lot of debt, we will make sure that debt management is carried out carefully because the signs are there", he asserted.

The Minister of Finance added that the function of the State Budget is very strategic in the economy as well as an important instrument in supporting the social conditions of the community.

"The state budget has many functions, when the economy is in shock, the state budget is here to provide stability. Then, when the people are in need, assistance will be given. Then, those who have more ability have to pay higher taxes, while those with lower incomes pay fewer taxes or are even exempted,” he said.

Furthermore, the state treasurer revealed that the benefits of tax collection would be returned for the benefit of the community.

“If someone says they don't feel the tax benefits, look at the electricity, maybe they will get a discount from the government for those with 900 VA power, or maybe they will be exempted altogether for 450 VA. There is also a time when cooking at home using LPG gas, which is subsidized by the government. Even at school, the operation uses state money. It's all obtained through taxes", he explained.

For information, in the 2021 State Budget Law, the budget deficit is estimated at IDR 1,006 trillion or 5.7 percent of gross domestic product (GDP). This figure comes after this year's estimated spending will cost IDR 2,750 trillion while revenue will only amount to IDR 1,743.6 trillion.