If you were a Minister of Finance of your country, what fiscal policy reform that you will implement to maintain economic stability post pandemic?
The pandemic has had a wide impact on every line of life of the nation and state.
All countries in the world must feel the impact of Covid-19.
One of them is the impact of Covid-19 on a country's economy.Not a few in this line there was a mass impact that was fatal for the community itself and the government.
if we look further, the impact of Covid-19 is very much felt by the main business actors, small and medium businesses in Indonesia.
The Covid storm has made UMKM actors go bankrupt so they decided to make a massive layoff of their employees.
How could it not be, since covid hit this country, their income has decreased and it is difficult to balance their operating cash flow with the income they get.
Based on data obtained from the Central Statistics Agency (BPS) Indonesia stated that the number of UMKM in Indonesia reached 64.19 million, with a very dominant composition of Micro and Small Enterprises (UMKM), namely 64.13 million (99.92%) of the total sector. effort. . This group also feels the negative impact of the Covid-19 pandemic. In a situation of economic crisis like this, the MSME sector really needs special attention from the government because it is the largest contributor to GDP and can be XIII, No.10/II/Puslit/May/2021 is the mainstay in the absorption of labor, substituting the production of consumer goods or semi-finished goods. The complaints of these business actors directly have an impact on the state, namely by decreasing the income of business actors, the income from taxes also decreases. In the end, this is sporadic to other vital lines or sectors in the country. For this reason, an in-depth analysis or strategy or fiscal policy reform in overcoming this after the pandemic is needed in order to stabilize the country's economy. My opinion on this (fiscal policy reform strategy) is:
What's more, the magnitude and uncertain impact of the pandemic has made the tax policy response very dynamic.
All countries in the world must feel the impact of Covid-19.
One of them is the impact of Covid-19 on a country's economy.Not a few in this line there was a mass impact that was fatal for the community itself and the government.
if we look further, the impact of Covid-19 is very much felt by the main business actors, small and medium businesses in Indonesia.
The Covid storm has made UMKM actors go bankrupt so they decided to make a massive layoff of their employees.
How could it not be, since covid hit this country, their income has decreased and it is difficult to balance their operating cash flow with the income they get.
Based on data obtained from the Central Statistics Agency (BPS) Indonesia stated that the number of UMKM in Indonesia reached 64.19 million, with a very dominant composition of Micro and Small Enterprises (UMKM), namely 64.13 million (99.92%) of the total sector. effort. . This group also feels the negative impact of the Covid-19 pandemic. In a situation of economic crisis like this, the MSME sector really needs special attention from the government because it is the largest contributor to GDP and can be XIII, No.10/II/Puslit/May/2021 is the mainstay in the absorption of labor, substituting the production of consumer goods or semi-finished goods. The complaints of these business actors directly have an impact on the state, namely by decreasing the income of business actors, the income from taxes also decreases. In the end, this is sporadic to other vital lines or sectors in the country. For this reason, an in-depth analysis or strategy or fiscal policy reform in overcoming this after the pandemic is needed in order to stabilize the country's economy. My opinion on this (fiscal policy reform strategy) is:
What's more, the magnitude and uncertain impact of the pandemic has made the tax policy response very dynamic.
- Policy on refocusing of activities and reallocation of budget. At this stage the government must be able to provide fiscal stimulus and the government budget can be focused on the health aspect. I will allocate a larger health budget than other budget allocations. This is done to strengthen the post-pandemic health system, so that the pandemic can be controlled. During and after the pandemic, it is important for countries to think about and seek to strengthen the health system, which is in line with what was conveyed by Kruk et al. described a resilient health system as one that is “integrated with existing efforts to strengthen health systems,” is able to “detect and interpret local warning signs and quickly request support,” is able to provide services to a diverse population, is able to “isolate threats and maintain functional core, “and able” to adapt to changes in Health. With a reliable power system, it is useful to accelerate efforts to control pandemics and anticipate future pandemic events. So, if the state only focuses on helping parties affected by the economic downturn and encouraging aggregate demand but the health aspect is missed, in the end other goals may not be achieved.
......(To be Continued).........
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