√ Definition of State Finance, Objectives, Scope, Legal Basis and Sources
Definition of State Finance, Objectives, Scope, Legal Basis and Sources - In this discussion we will explain about state finances. Which includes the definition of state finances, the purpose of managing state finances, the scope of finance country, the legal basis of state finance and sources of state finance with a complete and easy discussion understood.
Definition of State Finance, Objectives, Scope, Legal Basis and Sources
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Definition of State Finance
State finance is a right and obligation that can be valued in money and everything in the form of money or goods can be made the property of the state. The definition of state finance according to Article 1 of Law no. 17 of 2003 concerning State Finances states that state finances can be interpreted as wealth government obtained from revenues, debt, government loans or can also be from government spending, fiscal policies and policies monetary.
Objectives of State Financial Management
There are objectives in managing state finances, including the following:
- Influence on economic growth
- Maintaining economic stability
- Relocating economic resources
- Encouraging revenue retribution
Scope of State Finance
The scope of state finances determines the substance in state finances. In Law No. 17 of 2013 concerning State Finance in article 2 which regulates the Scope of State Finance. State Finance referred to in article 1 number 1 includes:
- State rights in collecting taxes, circulating and issuing money and making loans
- The state's obligation to carry out public service tasks for the state government and pay bills from third parties.
- State receipts and expenditures
- State assets or regional assets that are managed by themselves or by other parties in the form of money, securities, receivables, goods and also other rights that can be valued in money. This includes assets separated from state/regional companies.
- Wealth of other parties controlled by the government in the context of carrying out governmental tasks and or public interest.
- Wealth of other parties obtained by utilizing the facilities provided by the government.
Legal Basis for State Finances
Legal basis or legal basis in the management of state finances, among others, namely:
General Platform
- 1945 Constitution
- MPR Decree on Outlines of State Policy (GBHN)
Special Platform
- Indonesian Treasury Law stbl. 1925 Number 448 and has been renewed by Law no. 9 of 1969
- Law No. 5 of 1973 concerning the Supreme Audit Board\
- Law on APBN
- Laws and regulations regarding taxes, customs and excise
- Government Regulations, Presidential Decrees/Instructions and Regulations/Decisions of the Minister of State Finance (including Presidential Decree No. 14A of 1980)
Sources of State Finance
There are several sources of state financial revenue, including the following:
Tax
Taxes are levies made by the government, either the central government or the local government, on the obligatory certain taxes based on law, this tax collection can be forced without any direct reward to the payer.
BUMN/BUMD profits
The profits of BUMN companies include both PMA and PMDN companies as owners of BUMN, the central government is entitled to a share of the profits obtained by BUMN. Likewise with BUMD, the local government as the owner of BUMD has the right to share in the profits that BUMD gets.
Loan
Government loans are a source of state revenue that is run when there is a budget deficit. Government loans in the future will become the responsibility of the government, because these loans must be repaid with interest. Loans can be obtained from within or outside the country, sources of loans can come from the government, banking institutions, non-bank institutions and also individuals.
Money Printing
Printing money is usually done by the government to cover the budget deficit, if there is no other way the government can take. Determining the amount of money to be printed must be planned carefully, so that the printing of money does not cause inflation.
fines and confiscation
The government has the right to collect fines or confiscate assets owned by the community, if the community whether individuals or groups as well as organizations are known to have violated the rules government.
Donations, Gifts And Grants
Donations, gifts and grants can be obtained by the government from individuals, institutions or the government, both from within and outside the country. The government has no obligation to return donations, gifts or grants. Donations, gifts and grants do not include government revenues that can be ascertained. Depending on the willingness of the party giving the donation, gift or grant.
Organizing Prize Draw
The government can organize a lottery by appointing a certain agency to be the organizer. The amount received by the government is the difference between the receipt of the lottery money minus the operating costs and the amount of the prize given.
Retribution
Levies are levies carried out by the region according to local regulations, collection can be forced in which the government provides direct compensation for payment.
Excise
Excise is a statutory state levy that is taxed on goods certain properties or characteristics to carry out restrictions, supervised production and circulation. Because it will have a direct effect on health and social order. The basis for consideration of the amount of excise revenue depends on the amount of goods subject to excise, the excise rate and the basic price of excisable goods.
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