Limited State Revenue Threatens Free Nutrition Eating Program

Free Nutrition Food (Photo: Antara)

JAKARTA - Director of the Digital Economy Center of Economic and Law Studies (Celios) Nailul Huda assessed that since it was first discussed, the Free Nutrition Eating (MBG) program has always raised questions regarding its implementation budget.

Huda said that Indonesia's state revenues were still limited, while other priority programs were also still running. With a large MBG budget, its supply will be very difficult to implement.

"I personally always question the budget for program implementation. State revenues are still very limited, other priority programs are also running, the jumbo MBG budget must be difficult to provide," he told VOI, Thursday, January 16.

Huda also reminded that Indonesia's tax ratio has decreased in recent years, which has an impact on limited state budget capacity and if the government imposes a 100 percent target for the MBG program, it is predicted that the budget deficit could be more than 3 percent.

Therefore, Huda believes that until 2029, the MBG program target is difficult to achieve due to budget constraints.

"So we believe that until 2029, the MBG program target is difficult to reach 100 percent due to budget constraints," he explained.

Furthermore, Huda criticized the government's move to seek budgets from other expenditure posts, such as education that was eventually opposed, as well as village funds that threaten village independence. However, he noted that the government was not serious enough to seek additional state revenues.

According to Huda, there are two great potentials to increase state revenues, namely first, increasing tax compliance in the mining sector which is still very low, which can provide tens of trillions of rupiah. Second, taking action against tax evaders, which is estimated to reach more than Rp300 trillion.

"This has been conveyed by Hasjim, so it should be used as a way for the government to increase its revenue coffers," he said.