REPUBLIKA.CO.ID, JAKARTA - Finance minister Bambang Brodjonegoro said fiscal room in 2015 would be wider because the government would boost tax income and conduct saving.

"We will not stay idle and rely solely upon subsidy reallocation but also seek other additional income from taxes, non-income taxes and saving," he said  on Tuesday.

The government has a fiscal room worth 110 to 140 trillion IDR its recent decision to shift the oil subsidy which is consumptive to more productive sectors by adjusting the price of subsidized fuel oils.

The minister said the government would widen the fiscal room by among others improving the scheme of electricity subsidy as well as save government spending on official travels and purchase of goods and non-infrastructure capital expenditures.

"Electricity subsidy has always missed due to a mix energy policy and has never met the target and therefore we will improve it. The government meanwhile will also save on goods spending as well as non-infrastructure spending such as buying cars, office equipment and computers," he said.

He said the government would also review social aid extension and promote energy self-sufficiency programs through increasing the use of gas and refinery development to make the state's non-tax income to increase.

"The social aid will later be directed to concrete social protection and target recipients. Apart from that we will seriously support the programs of the ministry of energy and mineral resources so that our income would not only come from taxes but also non-taxes," he said.

He said the government would also put the tax sector in order and hoped the tax director general to be selected later could carry out his mandate well to achieve the tax income target reaching 1,400 trillion IDR.

"We wish the tax income target will be achieved with support from all parties. If the tax income increases and spending optimal the fiscal room will be wider and the funds could be used for welfare improvement programs," he said.

He said the government has confirmed that the fiscal room created from the subsidized oil price adjustment and optimization of tax income as well as saving could be used to boost infrastructure development and quality of education and health services.

Government plans to seek other additional income from taxes, non-income taxes and saving. (Illustration)

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