REPORT OF APBN

FINANCIAL STATE AND LOCAL

LECTURER
VIMA TISTA PUTRIANA, SE, Ak, M.Sc,
CA, PhD

BY NAURAH ATIKA DINA

1710533024
 INTRODUCTION

The State Budget (APBN), is the annual financial plan of the Indonesian state
government approved by the House of Representatives. The APBN contains a
systematic and detailed list containing plans for state revenues and expenditures for
one fiscal year can be compared to the household budget or company budget which
has two sides, namely the income side and expenditure side.
Budgeting is always faced with uncertainty on both sides. For example, the revenue
side of the household budget will depend on whether or not there is a change in salary
/ wages for households that own it.
Likewise, the expenditure side of household budgets is much influenced by changes
in the prices of goods and services consumed. The revenue side of the company's
budget is largely determined by the proceeds from the sale of products, which are
influenced by the people's purchasing power as a reflection of economic growth.
 DISCUSSION

A) Understanding and Scope of the State Budget

The State Budget (APBN) is the annual financial plan of the state government
approved by the People's Representative Council. (Article 1 number 7, Law No.
17/2003). Referring to Article 12 of Law No. 1/2004. concerning State Treasury,
APBN in one fiscal year includes:
1. The rights of the central government are recognized as an addition to the value of
wealth.
2. The obligation of the central government which is recognized as a deduction from
the value of wealth
3. Receipts that need to be repaid and / or expenses that will be received again, both in
the fiscal year concerned and in the following fiscal years.

B) Function of State Budget (APBN)

1. Allocation functions, namely revenues derived from taxes can be allocated for
general expenditures, such as construction of bridges, roads and public parks.
2. Distribution function, namely income that is not only used for the public
interest, but can also be transferred to subsidies and pension funds.
3. The stabilization function, namely the State Budget (APBN) serves as a
guideline so that the country's income and expenditure are regulated according
to the application. If the income is used in accordance with what is applied, the
State Budget (APBN) functions as a stabilizer.
4. Planning function, meaning that the State budget can be a guide for the State to
plan activities for the year. If a shopping has been planned in advance, the
State can make plans to support the expenditure. For example, it has been
planned and budgeted to build a road construction project with a value of
billions. So, the government can take action to prepare the project so that it can
run smoothly and smoothly.
5. The function of supervision, means that the State budget must be a guideline to
assess whether the implementation of State government activities in
accordance with the provisions that have been set.

C) Structure and Structure of the State Budget

The APBN structure consists of state revenues and grants, state expenditure,
primary balance, surplus / deficit, and financing. Since 2000, Indonesia has compiled
the composition of the state budget from T-accounts to I-accounts in accordance with
the standards of government financial statistics, Government Finance Statistics (GFS).
1. State Revenues and Grants.
APBN revenues are obtained from various sources. In general, tax revenues include
income tax (PPh), value added tax (VAT), Land and Building Tax (PBB), Land and
Building Rights (BPHTB), Excise and other Taxes, and Trade Tax (customs entry and
export tax / levies) is the main source of income from the APBN.
In addition, non-tax state revenues (PNBP) include revenues from natural resources,
deposits of BUMN profits, and other non-tax revenues, although giving a smaller
contribution to the total revenue of the budget, the number increases significantly
each year Different from the budgeting system before the fiscal year 2000, in the
current budgeting system, sources of financing (loans) are no longer considered part
of revenue.

2. State Expenditures.

3. Deficit and Surplus.

A deficit or surplus is the difference between revenue and expenditure.
Expenditures that exceed revenue are called deficits; on the contrary, revenue that
exceeds expenditure is called a surplus. Since 2000, Indonesia has implemented a
deficit budget replacing balanced and dynamic budgets that have been used for
more than thirty years. In the APBN view, there are two terms of the budget
deficit, namely: primary balance and general balance (overall balance). Primary
balance is the total revenue minus expenditure excluding interest payments. The
general balance is the total revenue minus expenditure including interest
payments.

4. Financing.
Financing is needed to cover the budget deficit. Some important sources of
financing at present are: domestic financing (banking and non-banking) and
foreign financing (net) which is the difference between withdrawal of foreign
debt (gross) and repayment of principal foreign debt.

D) Principles in the National Budget

1. APBN Budget Principles
2. Dynamic Budget Principles
3. Functional Budget Principles
Since 1999, the principle of balanced budget has not been used in preparing the
state budget. Each principle is measured by certain calculations
a Balanced budget principle
principle of Balanced budget (balance budget), namely the revenue side is
equal to expenditure, where the deficit is closed not by printing new money but
by loans / foreign aid. How to calculate a balanced budget:
b. Dynamic Budget Principles
      There are absolute dynamic budgets and relative dynamic budgets.
1. Budget is absolutely dynamic if Government Savings (TP) from year to year
continues to increase.
2. Budget is relatively dynamic if the percentage increase in TP (TP) continues
to increase or the percentage of dependence on development financing from
foreign loans continues to decline or the smaller percentage of financing
dependence on external assistance country with the formula:
c. Functional Budget Principles
1. Functional budget means that LN assistance / loans only function to finance
the development budget (development expenditure) and not to finance
routine expenditure.
 2. This principle is in accordance with the principle of "foreign assistance only
as a complement" in the financing of development. This means that the
smaller the contribution of foreign aid / loans to financing the development
budget, the greater the budget functionality.

PROBLEMS AND SOLUTIONS

The problem of this paper is to find out the financing of the state budget through
debt which is part of the management of state finances that is commonly carried out
by a country.

A. Debt background
Debt is part of the Fiscal Policy (APBN) which is part of the Economic
Management Policy as a whole.
Debt is primarily a consequence of the state budget (which has a deficit) posture,
where state revenue is smaller than the state expenditure.

B. Solution
The solutions we describe based on the above problems include:
1. Control of the debt to GDP ratio.
2. Prioritizing debt financing from domestic sources.
3. To make use of debt for productive activities, among others through project-based
issuance.
4. Using foreign loans selectively, especially for infrastructure and energy, and
maintaining negative net flow policies
5. Optimizing the role and society of financial inclusion and deepening the domestic
SBN market.
6. Perform debt management actively in the framework of asset liabilities
management (ALM).
 REFERENCE
http://mugnisulaeman.blogspot.com/2018/01/makalah-anggaran-pendapatan-dan-belanja.html

https://id.wikipedia.org/wiki/Anggaran_Pendapatan_dan_Belanja_Negara_Indonesia_Tahun_Anggar
an_2015

https://www.kemenkeu.go.id/apbn2017

https://www.kemenkeu.go.id/

https://www.kemenkeu.go.id/apbn2018