8 Sources of State Finance and Examples

State finances are all matters related to reception and spending country as well as its effect on the economy, source of state finance obtained from several things.

All receipts and expenditures are calculated by the government carefully and thoroughly with responsibility.

All of these are compiled in the State Revenue and Expenditure Budget (State Budget). The APBN is a detailed list of the state's financial condition which includes state revenues and expenditures.

8 Sources of State Finance and Examples

1. Tax

Is one of instrument by the government to finance development. Coercive in nature based on the constitution, mandatory contributions to the state owed by individuals or entities.

By not getting a direct reward and using it for the needs of the state and the prosperity of the people as much as possible. Taxes are the main source of state finance.

Example: Hotel tax, restaurant, entertainment, billboard, street lighting, Income Tax (PPh), Value Added (VAT), Tax motor vehicles, transfer fees for numbered vehicles, motor vehicle fuel taxes, Sales Tax on Luxury Goods (PPnBM).

2. Retribution

Local levies (withdrawals) obtained from the provision of services or land use. According to UU no. 28 Year 2009 is a regional levy as payment for services or the granting of certain permits specifically granted by the regional government for personal or corporate interests.

Examples: Building Permit Fees, Malioboro Street Parking Fees in Yogyakarta, Health Service Fees, Education Service Fees, Terminal Fees.

3. Advantages of BUMN/BUMD

Is a form of government intervention to provide goods or services related to the needs of many people's lives. With the aim of being able to control prices so that they are not controlled by the owners of capital.

Example: Telkom, Regional Water Company, Bulog

4. Fines and confiscation

The form of enforcement of discipline and the character of the citizens uses a way of submitting financial penalties for a violation.

Example: Penalty for late payment of electricity

5. Money Printing

The form of the government's efforts to facilitate transactions among the public, besides that the amount of money in circulation can control inflation. Yuksinau.id give the following example:

Example: The General Company for Printing Money of the Republic of Indonesia, The Fed America issued a monetary policy by printing more dollars.

6. Loan

The form of activity of a financial institution to gain profits from lending money to its members or customers, which will be returned with interest.

Government loans are a source of state revenue, which is done when there is a budget deficit. Unfortunately, government loans will become a burden in the future, because they must be repaid with interest.

Loans can be obtained from within or outside the country. Sources of loans can come from the government, non-bank institutions, banking institutions, and individuals.

Example: A business loan from a cooperative.

7. Donations, gifts and grants

It can be obtained by the government from individuals, institutions, or governments from within and outside the country. The government has no obligation to return donations, gifts or grants.

Donations, gifts, grants are not government receipts that can be obtained for sure. Depending on the willingness of the party who gave donations, gifts, or grants.

Example: Donations of natural disaster funds from abroad to the state.

8. Prize Draw

The government can carry out the lottery with prizes by appointing a certain institution as the organizer.

The amount obtained by the government is the difference between the receipt of the lottery money minus the operating costs and the amount of the prize given to the winner.

Example: Bank Danamon Sweepstakes with car prizes.

If you have other examples of the 8 sources of state finance as above, please add them in the comments below. May be useful.