Get To Know The Definition Of The State Budget (APBN), Its Functions, And Legal Basis

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

JAKARTA - The State Budget (APBN) is an annual financial plan for the Indonesian government that has been approved by the House of Representatives (DPR). Usually, the APBN is run by the minister of finance as state treasurer.

The APBN contains a systematic and detailed list containing plans for state revenues and expenditures for one fiscal year, starting from 1 January - 31 December for each period. APBN, revised APBN, and accountability for the APBN each year are stipulated by law before the DPR.

In its structure, the APBN has three main things, namely, revenue, expenditure, and state financing. The APBN function itself is very crucial. Apart from being a tool of 'life' for the state, this instrument is also useful for the welfare of the people.

Without the state budget, the state will find it difficult to empower its economic functions. For this reason, the preparation of this fiscal instrument must be carried out thoroughly by considering all aspects contained in a country.

Because of its strategic nature, the public should supervise APBN. The government as the executor also needs to be transparent in its management.

In terms of function, the APBN is divided into several ways, such as a brief description below.

Authorization Function

The authorization function means that the government has the authority to manage resources according to the plan to be carried out in that year.

Planning Function

In this function, the APBN is an instrument for planning funds to be used by the state in one year. Like today, how the government focuses on plans to deal with the impact of the pandemic.

Oversight function

Because of its one-year nature, the APBN can be used as a reference for whether state revenue or expenditure is right on target. Because there are projections that are used as a benchmark in making decisions. So, it will be seen which sectors contribute positively or even which are less developed in the APBN.

Allocation Function

Here, the APBN can become a mandatory instrument by carrying out various state supplies. Also, the function of the APBN is useful for financing development carried out by the government.

Distribution Functions

The distribution function is intended to achieve equality and equality between regions and regions, so that social class and the distance between people from one another will be reduced.

Stabilization Function

The APBN can also function as an instrument in maintaining the economy. The most recent example is government intervention through debt securities financed by Bank Indonesia to fulfill the National Economic Recovery fund (PEN). The APBN can also balance inflation and deflation in the country.

State Budget Legal Basis

This fiscal instrument is covered by the 1945 Constitution to be precise in chapter VIII of the 1945 Constitution Amendment IV article 23 which regulates the State Revenue and Expenditure Budget (APBN).

Illustration. (Irfan Meidianto / VOI)

Meanwhile, the Sound of Article 23 which regulates the State Revenue and Expenditure Budget (APBN)

Paragraph (1): The state revenue and expenditure budget as a form of management of state finances is stipulated annually by law and implemented openly and responsibly for the greatest prosperity of the people.

paragraph (2): The President submits the draft bill on state revenue and expenditure to be discussed with the House of Representatives by taking into account the considerations of the Regional Representative Council.

paragraph (3): If the House of Representatives does not approve the draft State Revenue and Expenditure Budget proposed by the President, the Government shall implement the State Revenue and Expenditure Budget for the previous year.