Category Archives: Goverment Finances and Fiscal
Developments in Government Finances and Fiscal 2014:Q1
As per January 2014, revenue and grant realization had reached 5.5% of the target of IDR 1,667.1 trillion set in the state budget 2014, while government expenditure realization was 5.3%. Target of revenue and grants consist of IDR 1,665.78 trillion and IDR 1.36 trillion, in domestic revenues and grants, respectively. To date, tax revenues have reached 6.5% of the target set in state budget 2014 of IDR 1,280.4 trillion, were just 2% of the target of IDR 385.4 trillion. Total government expenditure in state budget 2014, is set at IDR 1,842.5 trillion, which comprise IDR 1,249.9 trillion in central government expenditure and IDR 592.6 trillion in regional government transfer. By January 2014, realized central government expenditure has reached 3.2%, while transfer local governments was 9.6%. Debt repayment and social contributions constitute the largest percentage of realized government expenditure, registering 10.8% and 10.1%, respectively.
Developments in Government Finances and Fiscal 2013:Q4
A. Developments in Fiscal Sector
The decline in economic growth has had adverse effect on tax revenues. Indonesian economic growth declined in 2013. On y-o-y basis, the economy posted growth of 6.05%, 5,83%, 5.62%, in quarter I, quarter II, and III, 2013, respectively, which was lower than 6.2% projected in the revised state budget assumption for 2013 (APBN-P 2013). Consequently, tax revenues declined.
Tax revenues are still below target. Nonetheless, if compared with the same period in 2012, (y-o-y), tax revenues registered an increase of 7.72%. Based on data from the Directorate General of Treasury, by October 31, 2013, tax revenues had reached IDR 634.6 trillion, which is 71.75% of the target set in the APBN-P 2013. To that end, lower than planned target tax revenues will complicate government efforts to achieve the target for the budget year by end of the year.
Table 1: Tax Revenues for January 1-October 31, 2013
Two months remain before the fiscal year comes to a close, but realized tax revenues still hover around 71.75% of the target set in APBN-P 2013.
Developments in Government Finances and Fiscal 2013:Q3
A. Developments in the Fiscal
The economic growth in quarter II-2013 stood at 5.8% (yoy), was lower than 6.3% posted in quarter II- 2012. The slowdown of Indonesian economic growth had adverse effect on low state revenues. The realization of state revenue by 31 August 2013 was IDR 844.9 trillion, which was higher than IDR 798.36 trillion posted during the same period in 2012. However, state revenues recorded in August 2013 of 56.3% of the target set in the Revised State Budget 2013 (APBN-P 2013), is lower than the achievement of 58.7% of the Revised State Budget 2012 (APBN-P 2012).