Minister of Finance Sri Mulyani: Budget Is an Important Instrument To Create Just and Prosperous Society

[Unpad.ac.id, 29/11/2016] In accordance with what was stated in the Indonesian constitution, the management of the Indonesian economy is to create a just and prosperous society. To that end, efforts are needed in the fight against poverty, reducing inequality, and increasing the productivity and competitiveness of the country. State Budget (APBN) is one of the important instruments in achieving this.

Menteri Keuangan, Sri Mulyani Indrawati saat memberikan Kuliah Umum “Kenali Anggaran Negeri” di Grha Sanusi Hardjadinata Unpad, Jln. Dipati Ukur No. 35 Bandung, Selasa (29/11). (Foto oleh: Dadan T.)*

Minister of Finance, Sri Mulyani Indrawati, during Public Lecture of “Be Acquainted the State Budget” at Graha Sanusi Hardjadinata Unpad, Jln. Dipati Ukur No. 35 Bandung, Tuesday (29/11). (Photo by Dadan T.) *

“With proper state budget we should possess a powerful instrument to achieve the ideals of our nation, reaching just and prosperous society,” said Indonesian Minister of Finance Sri Mulyani Indrawati during Public Lecture “Be Acquainted the State Budget” at Graha Sanusi Hardjadinata Unpad, Jln. Dipati Ukur No. 35 Bandung, Tuesday (29/11).

Sri explained that the budget management is similar to the management of a household spending. Budget itself consists of three parts, namely revenues, expenditures, and financing. According to him, spending will be as important as a source of income. If a household’s spending with strategic, and every penny spent is not just going to run, but also benefit the entire family.

“Spending the state revenue is as important as the search for state revenues. If we spend it properly, efficiently, free of waste and corruption, then the expenditure could be beneficial for society and the economy,” said Sri.

Furthermore, she explained backbone of the state revenue gained from taxes. Tax is a means for the state to become a sovereign state. If you want to become an independent country, we should be able to collect taxes properly. Taxes also become one of the important tools in creating a just and prosperous country.

“Budget is the symbol of independence of a country. Our sovereignty and independence is appraised from our ability to collect tax revenue, “said Sri.

Currently, the tax revenue in Indonesia is still below target. This is what needs to be addressed. In 2015, state tax revenue was 240 trillion IDR below the target, and in 2016 prediction it is up to 219 trillion IDR from the budgeted prediction.

“In Indonesia, our capacity to collect taxes is still very large since the tax compliance ratio is still low,” said Sri.
According to Sri, any local budget management skills are essential. In relateion to that, she expected Unpad to contribute in building the capacity of local governments to be better able to manage the budget for the welfare of the people.

On the occasion, Rector, Prof. Tri Hanggono Achmad, hoped that the activities of this public lecture will not only broaden students’ academic, but also inspire Unpad academic community to play a role in guarding and optimize a variety of things for the betterment of this nation.

“The thought patterns, how they have developed as the country program can be followed up and optimized,” said Rector. *

Reported by Artanti Hendriyana / eh