At The Islamic Economic Forum Sri Mulyani Talks About The Big Role Of The State Budget In Helping The Poor

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance, Sri Mulyani, said that the role of the State Budget is very important and strategic. Through this instrument, the government tries to bring about more equality and justice.

“First, we try to build human resources for the whole community. This can be seen from the significant spending on the education sector, health spending, and spending on social safety nets", she said when speaking virtually at the International Conference of Islamic Economics and Finance (ICEF), Tuesday, October 26.

The Minister of Finance explained that health spending currently reaches 6 percent of the total APBN (State Budget). Meanwhile, education spending based on the constitution must be allocated at 20 percent. Then, spending on social safety nets, including how the government assists the poor, is allocated quite large.

“This is how we try to eradicate poverty in the current generation by using the state budget, including intervention from the government. Because, Indonesia wants to ensure that no one in the entire population is left behind to get good health services, as well as access to education and social services", she said.

Meanwhile, another example mentioned by the Minister of Finance is how the government takes steps to bring justice through the implementation of a fairer tax system.

“We provide cash assistance to the poor and vulnerable. But at the same time, the government imposes a progressive income tax for people who have more ability. Now, the money from this tax collection is used to help the poor and vulnerable people", she said.

Not only that, the state, called the Minister of Finance, also took the initiative to bring jobs to the poor through special programs as well as strategies for providing basic infrastructure.

"The government is also trying to build basic infrastructure through labor-intensive programs so that the poor have access to jobs and remain productive", she said.

For information, the government allocates state expenditures of no less than IDR 2,750 trillion for the whole of 2021. Of this amount, around 25 percent is used to cushion the impact of the COVID-19 pandemic, including the provision of social assistance and the provision of health services.