Sources Of State Revenue You Can Know – If asked, where does the source Of State Revenue or income come from? Then the most common answer you might find is taxes. That answer is correct. This is because taxes are the main source of state revenue. But what you must know is that the source of income or state revenue does not only come from tax transaction activities. But there is also non-tax income. To find out more about the sources of state revenue, see the following article.
About Sources Of Revenue And State Revenue
What is the source of state revenue and income? The answer is found in Article 1 Paragraph (9) of Law No. 17 of 2003 concerning State Finance. According to the law, state revenue is money that goes into the state treasury. Meanwhile, state revenue is the right of the central government which is recognized as an addition to the value of net worth.
State revenues in Indonesia are designed and managed in the draft State Budget (APBN). It is the APBN that functions to allocate state revenues which are state revenues and are used to carry out programs and activities related to the state. If the income is smaller than the expenditure budget, then the APBN is in deficit which has an impact on the slow pace of government development programs or activities.
Types Of Revenue Sources Or State Revenue
As previously explained, the state is obliged to collect state revenues. So, where do the sources for collecting state revenues come from? The sources of state revenues consist of taxes, non-tax state revenues, and grants. To better understand the three sources of state revenue, the following is an explanation.
Taxes As The Main Source Of State Revenue
Taxes, one of the most common sources of state revenue, is widely known by the public. The tax itself is a levy imposed on an object, whether it is goods, services, or certain assets that have a benefit value and become a mandatory contribution for citizens who have met the criteria as taxpayers. Tax levies are coercive. That means if a taxpayer does not pay taxes, there are sanctions in it.
Non-Tax State Revenue (PNBP)
As the name suggests, this income is income that comes from non-tax income. The types of Non-Tax State Revenue are mentioned in Law No. 9 of 2018 concerning Non-Tax State Revenue. Meanwhile, according to the law, non-tax state revenue consists of the following:
- Utilization of Natural Resources.
- Services are all forms of providing goods, services, or administrative services that are the responsibility of the government, both for meeting community needs and implementing statutory provisions.
- Separate Management of State Assets is the management of state assets originating from the state budget of revenues and expenditures which are used as state capital participation or other legal acquisitions.
Under the PNBP Law, grants are considered as non-PNBP receipts. So even though it is non-tax income, grants have their classification and rules. The grant itself is regulated in PP No. 10 of 2011 concerning the Procurement of Foreign Loans and Grant Receipt. government grant is any state revenue in the form of foreign exchange converted into rupiah, goods, services, or securities obtained from the grantor that does not need to be repaid, originating from within the country or abroad.