The draft 2018 state budget unrealistic: Gerindra

STATE BUDGET - The Gerindra Party, which is led by Prabowo Subianto – the main political rival of President Joko “Jokowi” Widodo – has slammed the draft 2018 state budget and is urging the government to compose a realistic and credible budget bill.

“The budget bill does not seem to be sturdy as the state revenue target is not realistic,” Party member Rahayu Saraswati Djojohadikusumo read out her faction view at the House of Representatives on Thursday.

“Our experiences from the last few years tell us that revenue targets were always revised [down].”

The government aims to collect Rp 1.89 quadrillion (US$140.7 billion) in state revenue next year. Of the amount, Rp 1.61 quadrillion will be sourced from tax collection, a higher figure than this year’s target.

However, economists and tax experts expect the growth to touch more than 20 percent given this year’s projected shortfall due to slow tax collection so far this year.

Gerindra projected there would be a tax shortfall of at least Rp 100 trillion next year.

“The government should have proposed a realistic draft state budget draft,” Rahayu said.

The government is scheduled to give its response next Thursday.

“Generally, [the lawmakers’] views are good. We will go through the proposal in more detail from the macroeconomic assumptions to its posture,” Finance Minister Sri Mulyani Indrawati told reporters after the session. (Prima Wirayani)