6 Functions of State Budget, also Know the Basic Laws that Regulate it

Kapanlagi.com - The State Budget (APBN), is designed annually. The APBN is made systematically and in detail. The APBN includes plans for revenue and expenditure from January 1 to December 31. With the APBN budget, the state finances will be more clearly channeled according to needs. Therefore, it is important to know the functions of the APBN.

Before it is determined, the APBN must go through the approval process from the People's Representative Council (DPR). In general, there are 3 main components in the APBN, namely state revenue, state expenditure, and state financing. In order to carry out the functions of the APBN, the government must carefully prepare it by considering various aspects.

So, what are the functions of the APBN? Let's take a look at the following explanation.

1. Planning Function

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The first function of the state budget is the planning function. This means that the state budget is used as a guide for the country in implementing activities. Specifically, planning is related to the regulation and planning of budget funds. In the end, the state budget will also serve as a reference for the country to focus the budget on specific sectors.

For example, when the government wants to focus on activities for the advancement of education, the government will design a larger budget for the education sector.

2. Authority Function

The government has full authority to allocate resources according to the annual planning. This is one of the functions of Authorization of the state budget. Because the state budget, regulated by the government, serves as the basis for implementing income and expenditure for several years. In addition, the state budget is also prepared to be accountable to the public.

3. Distribution Function

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The state budget (APBN) must also be used for common interests, such as infrastructure development, scholarships, pension funds, and so on. In this case, the state budget serves its function as a means of distribution of funds. The long-term preparation of the state budget can lead the country towards equality in every region. As a result, social classes and the gaps in society will decrease.

4. Supervision Function

The preparation of the state budget can also be used to carry out the supervision function. This means that the state budget will serve as a guide for the government to monitor and evaluate certain activities. Such monitoring and evaluation will be used as a reference for similar activities in the future years.

5. Stabilization Function

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The state budget (APBN) prepared by the government will become a tool to maintain and strive for the country's financial condition. In addition, the state budget is useful in maintaining the stability of the country's economy by preventing excessive inflation or deflation. In relation to this fact, the state budget is currently performing its stabilization function.

6. Allocation Function

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The last function of the state budget (APBN) is the allocation function. With APBN, the government can direct the budget into several functions, such as addressing unemployment or improving the economy. This means that the funds stated in the APBN are used for the procurement of goods and activities that have been allocated. In addition, this APBN function is also closely related to government development financing.

7. Legal Basis for Governing APBN

As an official state document, APBN has provisions and regulations. These are stated in the 1945 Constitution, specifically in Chapter VIII of the 1945 Constitution Amendment IV Article 23 which regulates the State Revenue and Expenditure Budget (APBN).

In addition, the rules and explanations regarding the State Revenue and Expenditure Budget (APBN) are also found in the Constitution Article 23, paragraphs 1, 2, and 3, which state:

Paragraph 1: "The state revenue and expenditure budget as a form of state financial management shall be determined every year by law and implemented openly and responsibly for the greatest possible prosperity of the people."

Paragraph 2: "The draft law on state revenue and expenditure budget is submitted by the President for discussion together with the People's Representative Council, taking into account the considerations of the Regional Representative Council."

Paragraph 3: "If the People's Representative Council does not approve the draft State Revenue and Expenditure Budget proposed by the President, the Government shall implement the previous year's State Revenue and Expenditure Budget."

That is among the reviews regarding the functions of APBN and the legal basis that governs it. Hopefully, it is useful and can increase knowledge.

(kpl/psp)