Government's Plan to Return Non-Tax State Revenue Violates Law and Constitution

Strategic Insights -

The Indonesian government's plan to return non-tax state revenue directly to each ministry without a budgetary proposal in the House of Representatives is being heavily criticized by lawmakers. Ramson Siagian, a member of the House Budgetary Commission, warned that this move is not only unconstitutional but also vulnerable to corruption, collusion, and nepotism. The government's plan is based on a statement by Coordinating Minister of the Economy Aburizal Bakrie, who said that the move is aimed at cutting bureaucracy.

Key Takeaways:

  • The government's plan to return non-tax state revenue directly to each ministry without a budgetary proposal is unconstitutional, violating Articles 4, 9, and 23 of the 1945 Constitution.
  • The plan is also against the law, violating Law No. 17/2003 on State Finance and Law No. 22/1997 on Non-Tax State Revenue.
  • The implementation of this policy could lead to corruption, collusion, and nepotism due to the lack of transparency and oversight.
  • Non-tax state revenue is projected to reach Rp205.2 trillion in 2006, while tax revenue is projected to reach Rp416.3 trillion, out of a total state revenue projection of Rp625.2 trillion.
  • The budgetary proposal mechanism is crucial in ensuring transparency and accountability in the allocation of state revenue.
  • Lawmakers, led by Ramson Siagian, have expressed strong opposition to the government's plan, citing its potential risks and consequences.

Statistics:

  • Non-tax state revenue is projected to reach Rp205.2 trillion in 2006.
  • Tax revenue is projected to reach Rp416.3 trillion in 2006.
  • Total state revenue is projected to reach Rp625.2 trillion in 2006.
  • The budgetary proposal mechanism is overridden by the government's plan, which could lead to a lack of oversight and transparency.

Sources:

  • ANTARA (01-11 1813)