What is behind the Cutting Down on the 2016 State Budget?
The government budget has been revised three times since last May 2016. Is it one of the worsening economic situations?
Vice Chairman of House of Representatives of the Republic of Indonesia, Fadli Zon reviewed that when the government put forward its program, it always expressed its optimism, which turned out to be unsupported with accurate economic calculation. For example, the tax revenue targeted to be 234 trillion IDR in 2015 totally missed the target. This also happened to the government budget for the first semester of 2016, which reached a deficit of 73% of the State Budget target, and the target revenue of tax amnesty, which only reached less than 1% despite the fact that it had been released more than a month. All of these were caused by immature budget calculation.
Amidst economic hardship, He suggested looking back at Mohammad Hatta’s thought. “He was a proclaimer as well as an economist,” he said.
Fadli Zon – Vice Chairman of Gerindra Party asserted that the way out planned by the government to overcome economic problems should not be off the track outlined by the constitution.
He also said that Hatta, the independence Proclaimer had bequeathed Article 33 of 1945 Constitution to us all. By virtue of this Constitution, we have actually formulated and ordered a certain economic system, by which we have no freedom to alter it at will.
Before hundreds of participants and invitees, Fadli explained that Hatta, who formulated Article 33 of 1945 Constitution, envisaged that economic policy cannot rely on theory of economy. When talking about People’s welfare, theory of economy shall not have a closing paragraph as it is the politic of economy, which gives the final decision. That is the historical as well as constitutional positions of Article 33 of 1945 Constitution.
According to him, economic system or politics of economy is referred to as the way a State regulates her economy. He added that Hatta, who created Article 33 of `1945 Constitution, viewed that politic of economy should not fully abide by economic theory. On the other hand, it is the economic theory that should abide by politic of economy.
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