Sri Mulyani's Subordinates: Flexibility In The Use Of The State Budget Is The Key To Reducing The Impact Of The Pandemic

Expert Staff to the Minister of Finance for Tax Compliance Yon Arsal (Photo: Doc. Antara)

JAKARTA - Expert Staff to the Minister of Finance for Tax Compliance, Yon Arsal, said that flexibility in managing the State Revenue and Expenditure Budget (APBN) during the pandemic is very necessary to reduce the impact on the health sector and the economy.

According to him, the flexible use of the state budget allows state administrators to determine priority sectors that must receive first treatment in the midst of ongoing uncertainty.

"But of course, in using state money, one must uphold the values of accountability and transparency," he said in an official statement as quoted on Wednesday, July 7.

Arsal added that one that plays an important role in the APBN is tax support as the main contributor to state revenue.

"Taxes are expected not only to play a role as a financing instrument in the State Budget but must be able to play a major role in providing a comprehensive stimulus to the national economic recovery (PEN), especially during the pandemic," he said

Furthermore, Arsal explained that the tax disruption was quite severe due to COVID-19 which was then reflected in the contraction of revenues throughout last year and this year compared to normal conditions before the pandemic.

"This situation was then responded to by providing a number of incentives and tax stimulus to encourage economic activity in the community. In addition, the government is also rolling out tax reforms with the hope that the tax ratio can continue to be increased," he explained.

For information, flexibility in the use of the budget is reflected in the reallocation of PEN funds entering the second semester of 2021.

In a virtual press conference, the Minister of Finance (Menkeu) Sri Mulyani decided that three PEN sectors experienced an increase in budget while the other two sectors experienced a decrease.

Meanwhile, the three sectors whose budget was increased are social protection from Rp148.27 trillion to Rp149.08 trillion, the health sector from Rp172.84 trillion to Rp185.98 trillion, and business incentives from Rp56.73 trillion to Rp62.83 trillion.