Understanding of the State Revenue and Expenditure Budget

Understanding of the State Revenue and Expenditure Budget
State Budget (APBN) - Namely stands for state budget. In its scope there are two views, namely in the narrow sense and broad meaning. In the narrow sense is all state budget revenues, expenditure, and state financing, which in this case is defined as the government or state. Now, if in a broad sense it is added in the form of separated state assets.

State budget
Understanding of the State Revenue and Expenditure Budget
The annual financial plan of the Indonesian government approved by the House of Representatives (DPR). List of budgets containing systematic plans and detailed receipts and expenditures for the fiscal year (January 1 - December 31). The budget, changes in the state budget, and accountability of the state budget each year are determined by law.

Basic Law of the State Budget
The 1945 Constitution is the highest legal basis in the legal structure in Indonesia. Therefore, regulations regarding state finances are always based on this law, especially in chapter VIII of the 1945 Constitution Article Amendment IV 23 regulating the state budget (APBN).

APBN Structure
State Revenues and Grants,
State Shopping,
Primary Balance,
Budget Surplus / Deficit,
APBN Function
The budget is an instrument to regulate state expenditure and income in order to finance governance and development, achieve economic growth, increase national income, achieve economic stability, and determine the direction and priorities of development in general.
Budget authorization, planning, supervision, allocation, distribution and stabilization functions. All revenues and expenditures are correct that state duties in the given fiscal year must be included in the budget. Surplus income can be used to finance the state budget for the next fiscal year.
The authorization function, implies that the state budget is the basis for implementing revenue and expenditure for this year, thus, spending or revenue can be accounted to the public.
The planning function, implies that the state budget can be a guideline for the state to plan activities for this year. When spending is pre-planned, the country can make plans to support spending. For example, it has been planned and budgeted to build several billion road construction projects. Thus, the government can take action to prepare the project to run smoothly.
The oversight function, means that the state budget must be a guideline for assessing whether the activities of implementing the government of the country are in accordance with the stipulated provisions. Thus it will be easy for people to judge whether the government's actions to use state funds for certain purposes are justified or not.
The allocation function, means that the state budget must be directed to reduce unemployment and waste of resources and increase efficiency and effectiveness.
Distribution function, means that the state budget policy must take justice and propriety.
The stabilization function, which means that the government budget is a tool to maintain and work for the balance of economic fundamentals.

Basic Macroeconomic Assumptions of APBN
Basic macroeconomic assumptions are very influential on the magnitude of components in the APBN structure. The basic assumptions are: