Performance Budgeting (Rights and Obligations of State)

Here we will discuss about the present government sector accounting in Indonesia. Among them are the rights and obligations of the state.

Rights Country:

1. Have the right to receive a share of profits of State-Owned Enterprises. In the Act of 1945 Article 33 paragraph 2 states that "branches of production that are important for the State and of importance to the State and who dominate the life of the people controlled by the State". So that all the business or related field of people's lives will be managed by the government and the government have the right to such benefits.
2. Getting tuition
3. Doing loans. The government has the right to make loans on the condition does not lead to any intervention management in the field of management. Better government borrows from its own people ie the people who prosper by issuing bonds of the Republic of Indonesia as it had done the year - previous year which is usually played in the secondary market.
4. Issue bonds or debentures
5. Obtaining Resource Economics of the goods seized, but not all items can be owned by the government's seizure of prohibited goods including goods smuggling cocaine, drug, then by the government of illicit goods will be destroyed.

All rights of government outlined in the State Budget on the revenue.

State obligations:

State obligations consist of the obligation can be measured in money that can not be measured in money.

Obligations that can be measured in money:

1. Pay salaries for Civil Servants, Police, Armed Forces of the Republic of Indonesia
2. Build the infrastructure upon priorities and resource availability to build or manage economi.
3. Providing subsidies to sectors concerning the livelihood of many people such as education and health according to the scale of priorities.

While the obligation of government that can not be measured in units of money is with providing protection and prosperity to the people.

State obligations outlined in the State Budget on the expenditure side.

Government as Economic Entities there are two, namely:

•  Accounting Entity 

Looking at the broader aspect, or more generally held the treasury function. Ie, receive, store and spend money based on the Decree of Authorisation but it also has a responsibility to take care of the State financial budget in the Budget and Expenditure Expenditure which is then submitted to the Legislature. Budget control is a tool that can describe the indicators and public policy as a basis for performance benchmarks. To view the budgeting indicators can be seen in the Work Plan. Budgeting is a major factor that must balance between revenue, expenditure and financing. The task of accounting entity also is a need to provide precise and accurate reporting and useful.

• Reporting Entity

It is an obligation to account for legal reporting and transparency that reflects the balance between generations.