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RI's tax targets unlikely to be achieved: Minister
Finance Minister Bambang Brodjonegoro said on Thursday that it was likely that Indonesiaâs 2015 tax revenue target of Rp 1
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inance Minister Bambang Brodjonegoro said on Thursday that it was likely that Indonesia's 2015 tax revenue target of Rp 1.29 quadrillion (US$98.42 billion), as stated in the state budget, would be achieved.
'In a worst-case scenario, we calculate that our tax revenue will reach only Rp 120 trillion,' he said as quoted by Antara during a hearing with House of Representatives Commission XI on finance and banking in Jakarta on Wednesday evening.
Bambang said the prediction was made on the assumption of a worst-case scenario in which intensified tax collection efforts conducted by the ministry's tax directorate general did not run effectively and global conditions did not improve by the end of the year.
The minister further explained that it was also predicted that Indonesia's spending absorption would not match initial projections as a result of lower realized spending by ministries and non-ministerial government institutions, which reached a range of 92 to 93 percent from the set targets.
However, he was certain that Indonesia's current-account deficit would stay within a range of 1.9 and 2.2 percent of gross domestic product (GDP). He said the government anticipated the possibility of widening the deficit by making use of bilateral and multilateral loans or using the accumulated budget surplus (SAL).
'These two things are both risky, in which the realization will not be similar with the state budget, which has been passed into law,' said Bambang.
He said that in general, state budget outlook was still safe and controlled. 'The deficit forecast is between 1.9 and 2.2 percent. There is still a widening deficit, but it will be still similar to last year,' said the minister. (ebf)(+++)
