Reframing Public Finance: Promoting Justice, Democracy and Human Right in Government Budgets for Indonesia
I think the concept put forward by Paolo de Renzio
and Lakin's paper, 2019 is a good concept and can be recommended for improving
public finance practices and government budgets in Indonesia. As stated by
Paolo de Renzio and Jason Lakin, in recommending the stages in the management
of public finance practices and advanced government budgets in a country, the
following are discussed: (1) fiscal reform and tax equity, (2) allocation
and expenditure. resource; 3) service delivery and performance; and 4) deficit,
debt, and financing. The four discussions, of course, for the
Indonesian context are challenges that require the Indonesian government's hard
efforts because at each point of the discussion, Indonesia still needs
improvements, in this case fiscal reforms that can touch all lines in the
government bureaucratic system. I support this with several statements that put
forwarded by the Minister of Finance of the Republic of Indonesia, Sri Mulyani
Indrawati regarding the governance of public finance practices and the
Indonesian government's budgetmanagement , as follows:
1. The Minister of Finance explained that the government's budget will focus on strengthening the quality of human resources, accelerating infrastructure development, bureaucratic and regulatory reform, and supporting industrial revitalization by encouraging green economic development.
2. Fiscal policy in 2023 will also increase the
effectiveness of economic transformation supported by fiscal reforms. This
reform was carried out through the mobilization of revenues for the widening of
fiscal space, the consistent implementation of improving the quality of
spending or spending better in an efficient and effective manner, as well as
continuing to encourage the development of creative and innovative financing.
3. The Minister of Finance explained that the
state revenue policy is directed to encourage revenue optimization by
maintaining the investment climate and the sustainability of the business world
as well as environmental sustainability. This is pursued by maintaining the
effectiveness of the implementation of tax reform through the Law on
Harmonization of Tax Regulations (UU HPP), encouraging a healthier and fairer
taxation system and encouraging the expansion of the tax base and increasing
taxpayer compliance.
From the above points put forwarded by the Ministry
of Finance, it can be concluded that, in fact, Indonesia in 2023 will lead to
many improvements in public financial management and government budgets. One of
them is in the second point regarding the explanation of the 2023 fiscal policy
reforms that will certainly be carried out by Indonesia in the context of the
effectiveness of economic transformation and supported by the mobilization of
income for the widening of fiscal space. At this point, it is actually very
inline with what was conveyed by De Renzio and Lakin's 2019 writing, which
explains that in tax reform, tax policy and revenue collection is one of the
areas where fairness considerations are very important. how? citizens' state
taxes - through direct or indirect taxation, view personal and corporate
income, wealth vs. consumption, etc. – determine how the burden of financing
public spending is distributed. In this area, it is important to look at the
progress of the overall tax system, or whether proportionally asking for more
of it is better in terms of income and wealth.
.....(To be continued)........
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