KEBIJAKAN FINANSIAL DAN FISKAL FIRDA HIDAYATI DR., S.Sos., M.P.A

Controlling Economic policy  budget The allocative function- determining object of spending The stabilization function- fiscal and monetary policies The distributive function- of income or wealth at the various levels of society

PUBLIK FINANCE- SUBJECTS HOW TO SECURE AND SPEND ITS REVENUES? WHAT ARE RELEVANT DECISIONS TO BE MADE? WHAT ARE EFFECTS OF THE DECISIONS TO REMAINING MEMBER? WHAT ARE IMPACTS OF ITS BEHAVIOR ON INDIVIDUAL AND FIRMS? PROGRAMS EVALUATION GOVERNMENT? GENERAL WELFARE? DEMOCRATIC? COLLECTIVE DIMINISHING MARGINAL UTILITY? INDIVIDUAL PREFENCES? THE GOVERNMENT AS MEANS OF COLLECTIVE ACTION

WHY FINANCIAL POLICIES NEEDED Public accountability and transparency Ensuring a considered approach Consistency of decision making Clear guidance for staff

GOVERNMENT FINANCE POLICY ‘Economic Stimulus' Attempts by governments or government agencies to financially stimulate an economy. TOOLS: the use of monetary or fiscal policy changes to kick start a lagging or struggling economy.

GOVERNMENT FINANCE POLICIES MONETARY POLICY is government attempts to control the economy (money, credits, financial assets supply and financial markets) FISCAL POLICY is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy (Basri & Subri 2003)

INDONESIAN GOVERNMENT FINANCE MANAGEMENT DIRECT MANAGEMENT  REVENUE AND EXPENDITURE IN APBN SEPARATE MANAGEMENT STATE-OWNED ENTREPRISES

MONETER POLICY CASH RATIO (CADANGAN DAN OPERSIONAL) OPEN MARKET (SURAT BERHARGA) SUKU BUNGA KREDIT SUKU BUNGA DEPOSITO TIGHT VS EASY MONEY POLICY

FISCAL POLICY 1.EXPANSIONARY: SPENDS MORE, CUTS TAXES OR BOTH 2.CONTRACTIONARY : CUT SPENDING TO REDUCE HIGH INFLATION

EXPANSIONARY SPENDS MORE: PROGRAMS TO DIRECT MONEY TO CITIZENS PUBLIC WORKS PROJECTS CUTS TAXES : supply-side economics frees up businesses to hire more workers OR BOTH

CONTRACTIONARY taxes are increased, and spending is cut

TOOLS TAXATION: OF INCOME, CAPITAL GAINS FROM INVESTMENTS, PROPERTY, SALES AND OTHERS TAXED OBJECT HAS LESS INCOME TO SPEND

TAXATION DRAWBACKS TAXED OBJECT HAS LESS INCOME TO SPEND