Govt seeks 11.1–11.7% increase in state revenue next year

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The government is targeting to increase state revenues by 11.19–11.70 percent next year, with the budget deficit expected to return to a level below 3 percent of the gross domestic product (GDP).

“State revenues are projected to increase within a range of 11.19 percent to 11.70 percent of the GDP,” Finance Minister Sri Mulyani Indrawati informed at the House of Representatives’ (DPR) plenary meeting on the macroeconomic framework and fiscal policies for the draft 2023 state budget in Jakarta on Friday.

The minister said the state income policy next year will be directed toward optimizing state revenues by maintaining a conducive investment climate, ensuring business continuity, and emphasizing environmental conservation.

The policy will be taken by ensuring effective tax reforms (harmonized tax law) to make the tax system healthier and fairer so that it would boost the expansion of the tax base and improve taxpayer compliance.

“By implementing the harmonized tax law effectively, the tax ratio will increase,” she said.

In addition, the government will also optimize non-tax state revenues by improving services and reforming asset management, the minister added.

She said she believes that the policies will improve the ratio of state revenues that they can be used to develop the quality of human resources, infrastructure, and green economy.

The effort to optimize state revenues is expected to accelerate inclusive economic growth and achieve the target of medium- and long-term development, she said.

“By doing so, Indonesia will be able to come out of the middle-income trap,” she added.

Source: Antara News