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2017 and 2018 General State Budgets
Orsamentu Jerál Estadu ba 2017 no 2018

Updated 17 December 2021

Link to page on 2016 state budget/Liga ba pájina kona-ba OJE 2016   Link to page on 2019 state budget/Liga ba pájina kona-ba OJE 2019

Contents of this page

Konteúdu pájina ida ne’e

2017 Budget Process

As in the last several years, the Ministry of Finance held a jornadas orçamentais workshop (formerly called "Yellow Road") on 16 May 2016. The discussion covered program and budgeting for 2017, including national priorities and the fiscal envelope. La'o Hamutuk and other civil society groups were not invited, although some journalists did attend. LUSA wrote three articles about the workshop (Tetum), reporting that the proposed fiscal envelope for 2017 will be $1.2 billion. Unlike in past years, none of the materials have been posted on government websites, but La'o Hamutuk has obtained and scanned most of the Ministry of Finance presentations (Tetum).

On 24 May, the Ministry of Finance presented five scenarios to the Council of Ministers for the fiscal envelope for 2017. Although the Government press release doesn't report the size of the budget to be proposed, local media reported the Secretary of State for the Council of Ministers as saying it will be $1.0 billion, or perhaps $1.2 or $1.3. On 7 June the Council of Ministers continued the discussion.

In June and July, Government and Parliament revised the current year (2016) budget, adding $391 million to pay for Tibar Port, the Suai Supply Base and other infrastructure megaprojects. Although the money added to the 2016 budget includes some of what had originally been planned to be spent in 2017, it is unclear whether the fiscal envelope for 2017 was reduced in response.

On 13 September, the Budget Review Committee concluded its consultation with various ministries, and the proposed 2017 budget law was approved by the Council of Ministers on 5 October.

The Prime Minister's office made a presentation (Tetum) on the budget cycle to the NGO Forum on 13 October. Although it's not clear from the slides, everything on the first 14 slides is done behind closed doors, with no transparency or public participation. Mid-October, when the Budget proposal has already been approved by the Council of Ministers and is presented to Parliament, is the first time its specifics are made known to citizens or civil society.

Prosesu Orsamentál ba 2017

Hanesan iha tinan hirak kotuk, Ministériu Finansas organiza seminar jornadas orsamentál (antes ne’e bolu "Yellow Road") ida iha loron 16 Maiu 2016. Diskusaun ne’e kobre programa no nian ba Orsamentu Jerál Estadu (OJE) 2017, inklui diskute prioridade nasional no mos envelop fiskál. La’o Hamutuk no ONG sira seluk la hetan konvite, maske jornalista balun bele atende seminar ne’e. LUSA hakerek artigu tolu kona ba Jornadas, no dehan katak proposta envelop fiskál ba tinan 2017 sei sai biliaun $1.2. La hanesan iha tinan kotuk, ba tinan ida ne'e, Governu la publika matéria husi Jornadas, maibé La'o Hamutuk hetan no scan parte aprezentasaun husi Ministériu Finansas.

Iha loron 24 Maiu, Ministériu Finansas aprezenta senáriu lima ba Konsellu Ministru ba envelop fiskál iha 2017. Maske  Komunikadu imprensa husi Governu la fó informasaun kona-ba montante tomak iha proposta OJE, maibe media lokal fo sai katak Sekretáriu Estadu ba Konsellu Ministru hatete bele Biliaun ida, ka dalaruma biliaun $1.2 ka $1.3. Iha loron 7 Juñu, Konsellu Ministru kontinua atu diskute asuntu ida ne'e.

Durante fulan Juñu no Jullu, Governu no Parlamentu halo retifikasaun ba OJE 2016, atu aumenta ho tokon $391 ba Portu Tibar, Suai Supply Base, no mega-projetu infrastrutura boot sira seluk. Maske osan adisionál ba orsamentu 2016 inklui ona buat balu sira ne'ebe orijinalmente planea tiha ona atu gasta iha 2017, ita seidauk klaru karik envelope fiskál hatún ka lae.

Iha loron 13 fulan Setembru, Komisaun Revizaun Orsamentál konklui ona ninia konsulta sira ho Ministeriu sira, no proposta Lei Orsamentu Jeral Estadu ba tinan 2017 hetan aprovasaun husi Konsellu Ministru iha loron 5 Outubru.

Gabinete Primeiru Ministru hatudu aprezentasaun kona ba Siklus Orsamentu do Estadu ba Forum ONG iha loron 13 Outubru. Maske apresentasaun iha slide sira ne’e la klaru, maibe buat hotu iha slide 1-14 ne'e halo ho segredu, laiha transparénsia ka partisipasaun husi públiku. Iha fulan Outubru nia klaran, bainhira OJE hetan aprovasaun ona husi Konsellu Ministru no haruka ba Parlamentu, nudar tempu ba dahuluk ba sidadaun sira ka sosiedade sivíl atu bele hatene konteúdu orsamentu ida ne'e.

Government budget proposal to Parliament

The Ministry of Finance submitted the proposed 2017 budget law to Parliament on 13 October, asking for total appropriations of $1,386,826,000, 11% lower than the original (pre-rectification) 2016 budget. Actual spending (execution) is always less than the appropriated amount, and the proposed 2017 budget is more than Timor-Leste has ever spent in a single year (total 2016 spending is not yet known). LUSA reported a few more details (original Portuguese).

La'o Hamutuk scanned the proposed budget law, as well as the Prime Minister's explanation of why he wants to withdraw $597 million more than the Estimated Sustainable Income of $482 million from the Petroleum Fund (both in Portuguese).

The Parliamentary secretariat distributed budget materials to Members on 18 October, along with this explanation (Portuguese).

As has been the case in every budget since the one proposed for 2014, the proposed 2017 budget expects less money from future oil revenues than was previously anticipated. The 2016 budget expected to receive $1,720 million from Bayu-Undan and Kitan between 2016 and 2022, but the proposed 2017 budget only anticipates half that amount ($867 million) during the same period, mostly in 2016 and 2017.

Petroleum Fund withdrawals are slightly reduced in 2017 from the all-time high in the 2016 rectification budget, although they are still more than double the Estimated Sustainable Income. However, budget plans for 2018-2021 return to high withdrawal levels, and the Fund's balance at the beginning of 2021 will be $4 billion less than its $17 billion peak in mid-2015.

Education spending continues to decline, as it has since 2014. Agriculture is also down slightly, although health receives a little more money than last year. Some planned infrastructure spending had been shifted from 2017 to the 2016 rectification budget, so the annual rate of infrastructure spending in 2016-2017 is higher than it has been since 2013, even though 2017 by itself is lower.

Governu nia proposta orsamental ba Parlamentu Nasional

Ministeriu Finansa haruka proposta lei Orsamentu Jerál Estadu ba 2017  ba Parlamentu Nasional iha loron 13 Outubru, ho montante total $1,386,826,000. Despeza ida ne'e 11% menus kompara ho OJE 2016 orijinál. Ezekusaun atual sempre menus liu montante alokasaun nian, no proposta OJE 2017 boot liu kompara ho gastu loos kada tinan to agora (maske ita seidauk hatene kona ba 2016). Artigu husi LUSA fó sai informasaun detaillu balu, maske La'o Hamutuk seidauk hetan husi fonte ofisiál.

La'o Hamutuk halo scan ba proposta Lei Orsamentál, no mós informasaun husi Primeiru Ministru ne’ebé esplika tanba sá nia hakarak hasai tokon $597 liu Rendimentu Sustentável tokon $482 husi Fundu Petrolíferu.

Sekretáriadu Parlamentu Nasional fahe dokumentu sira kona-ba proposta OJE 2017 ba Deputadu/a sira, hamutuk ho esplikasaun ida ne'e.

Nudár sai tiha kazu iha kada orsamentu dezde proposta primeiru iha 2014, proposta orsamentu 2017 tau hatudu hela katak future reseita petróleu sei menus kompara ho previzaun sira antes. Orsamentu 2016 ekspeta at hetan biliaun $1.72 hosi Bayu-Undan no Kitan durante 2016 no 2022, maibé proposta orsamentu 2017 antisipa de’it metade hosi montante ne’e (tokon $867) durante tempu ne’ebé hanesan, no barak liu durante 2016 no 2017.

Fundu Petróleu sei halo levantamentu ne’ebé tun uitoan iha 2017 kompara ho orsamentu retifikativu 2016 ne’ebé nudár tinan ba levantamentu as liu, maske, levantamentu iha tinan ne’e nafatin liu Rendimentu Sustentável Estimativa. Nune’e, planu ba 2018-2021 sei fila ba nivel levantamentu as, no Fundu Petrolíferu nia saldu iha inísiu 2021 sei hamenus biliaun $4 hosi nia másimu saldu biliaun $17 iha médiu 2015.

Despeza edukasaun kontinua tun, hanesan akontese dezde 2014. Agrikultura mós tun, maske saúde hetan osan uitoan tan kompara ho tinan kotuk. Planu despeza ba infrastrutura balu muda hosi 2017 ba retifikativu 2016, nune’e nivel despeza annual ba infrastrutura iha 2016-2017 mak ida ne’ebé as liu dezde 2013, mezmu ida be 2017 ne’e mak ida ne’ebé ki’ik liu.


Parliamentary consideration

Parliament circulated a calendar (Portuguese) for their consideration of the budget. Committee hearings begin on 26 October and run through 8 November. Parliament will hold a seminar on 9-10 November, and all Committee reports will be finalized by 21 November. General debate will take place on 22-24 November, with debate on specifics from 25 November until global approval on 9 December.

On 27 October, the Petroleum Fund Consultative Council hosted an all-day conference on the Petroleum Fund. La'o Hamutuk has posted presentations by TimorGAP, the Ministry of Finance, the Central Bank and the National Petroleum and Minerals Authority (ANPM). Although the financial people are coming to grips with the imminent end of oil revenues, presenters from the petroleum sector continue to dream of "up to 6 billion barrels" of unexploited oil and gas reserves, which could provide $40 billion more in upstream petroleum revenues to Timor-Leste over the next 25 years. However, as La'o Hamutuk has shown, these are in areas which have already been explored by oil companies and given up as unviable projects (except for Greater Sunrise which is pending resolution of the dispute with Australia), and the remainder could be worth nothing at all.

On 28 October, Parliament Committees C and D held a hearing with the Minister of Petroleum and Mineral Resources (MPRM) and the agencies under his supervision. We are posting scanned presentations from MPRM, EITI, ANPM, TimorGAP and the Institute for Petroleum and Geology (IPG). They propose to double the state subsidy to TimorGAP from $6 million in 2016 to $11.9 million in 2017. Many members of Parliament asked heated questions, but there was not time for the Minister's team to answer them, and later provided answers in writing.

Debate iha Parlamentu Nasional

Parlamentu fahe kalendáriu (Portuges) ba diskusaun orsamentu nian. Komisaun sira halo ona audiénsia sira ne’ebé hahú iha 26 Outubru to loron 8 Novembru. Parlamentu sei hala’o seminar ida iha loron 9-10 Novembru, no relatóriu Komisaun sira hotu sei finalize iha loron 21 Novembru. Debate jerál sei hala’o iha loron 22-24 Novembru, no debate ba espesialidade sei hahú hosi loron 25 Novembru to aprovasaun global iha loron 9 Dezembru.

Iha loron 27 Outubru, Konsellu Konsultativu Fundu Petrolíferu hala’o konferénsia loron ida kona-ba Fundu Petrolíferu. La’o Hamutuk publika ona aprezentasaun sira hosi TimorGAP, Ministériu Finansa, Banku Sentrál no ANPM. Maske apresentador sira hosi setór finanseiru nian mai ho informasaun katak rendimentu mina-rai atu to iha nia roha, maibé apresentador sira hosi setór petróleu kontinua mehi ba “barríl liu biliaun 6” hosi rezerva petroleum no gas ne’ebé seidauk esploita, ne’ebé bele fornese reseita petróleu ho osan liu biliaun $40 hosi atividade upstream nian ba Timor-Leste durante tinan 25 ba oin. Maske nune’e, La'o Hamutuk hatudu sai, area sira ne’ebé durante ne’e esplora ona hodi kompañia petróleu sira no sira deside la kontinua tanba projetu sira ne’e la viavel (esklui Greater Sunrise ne’ebé pendente hela tanba disputa hela ho Australia), no restu sira seluk sai laiha valor.

Iha 28 Outubru, Komisaun C no D Parlamentu hala’o audiénsia ho Ministériu Petróleu no Rekursu Mineral (MPRM) no ajénsia sira iha nia supervizaun nia okos. Ami publika aprezentasaun sira ne’ebé ami scan hosi MPRM, EITI, ANPM, TimorGAP  no Institutu Petróleu no Geolojia (IPG). Sira proposta atu aumenta duplu subsídiu hosi estadu nian ba TimorGAP hosi tokon $6 iha 2016 to tokon $11.9 iha 2017. Membru Parlamentu barak mak husu pergunta todan sira ba sira, maibé laiha tempu ekipa Ministru nian atu hatán ba Parlamentár sira, nune’e, Ministru fó resposta ho hakerek.

On 7 November, La'o Hamutuk testified to Committee C together with the NGO Forum and other civil society groups and presented this written submission (Tetum original), which we abridged for our blog.

On 9-10 November, Parliament organized a seminar on the proposed 2017 budget, announced by UNDP (Port.) with this agenda. We have uploaded presentations by La'o Hamutuk (Tetum), UN Women, the Ministry of Finance (Tetum) and the World Bank, and would welcome others. Afterwards, the Government issued a press release about its participation.

On 18 November, Parliament approved a process and agenda for plenary consideration of the 2017 budget law. Debate in generality will take place on 23-25 November. From 30 November to 3 December, a closed-door ad hoc committee will consider proposed amendments, followed by plenary debate on the specifics, which will conclude on 14 December.

The general plenary debate began on 23 November with a speech by Prime Minister Rui Araujo (also partial video), followed by policy declarations from CNRT, Fretilin, Partidu Demokratiku and Frente Mudansa (all Tetum). A government press release summarized the PM's presentation.

The Prime Minister divided proposed expenditures into recurrent (for functioning of the state machinery) and capital. He said that capital expenditures include the budget categories of Development Capital and Public Transfers, which he said are to be invested to support economic diversification and job creation. He explained that "front-loading" for capital expenditures -- taking more than the sustainable amount from the Petroleum Fund -- is justified because they will produce social, economic and financial returns in the medium and long term.

However, very little of the $421 million in Public Transfers (the largest category, comprising 30% of the entire budget) is being spent on things which produce returns over the medium or long term:

Parliament's Committee on Public Finances (C) presented a 109-page report (7 MB Portuguese) to Parliament including recommendations from the other Standing Committees. After three days of general debate, Parliament unanimously approved the budget in generality in the night of 25 November (government press release). Much of the discussion of specific details and amendments will take place in a closed-door Ad-Hoc Committee, which will present a unified text to Parliament for approval by 14 December.

Iha loron 7 Novembru, La’o Hamutuk fó testemuña ba Komisaun C hamutuk ho NGO Forum no grupu sosiedade sivíl sira seluk no aprezenta submisaun hakerek nian.

Iha loron 9-10 Novembru, Parlamentu organiza semináriu ida kona ba proposta OJE 2017, anunsia husi PNUD (Port.) ho agenda ida ne'e. Ami upload ona aprezentasaun sira husi La'o Hamutuk, UN Women, Ministériu Finansas no Banku Mundial (Ingles), no ami pronto atu simu sira seluk. Hafoin eventu ida ne'e, Governu fó sai komunikadu imprensa kona ba sira nia partisipasaun.

Iha loron 18 Novembru, Parlamentu aprova Guião da Discussão e Votação ba diskusaun iha Plenária kona-ba proposta OJE 2017. Debate iha jeneralidade sei akontese durante loron 23-25 Novembru. Husi 30 Novembru ba 3 Dezembru, Komisaun Eventual hasoru malu iha segredu atu konsidera proposta alterasaun sira. Tuir mai, debate iha Plenária kona ba espesialidade hahú, no sei remata iha loron 14 Dezembru.

Debate Plenária iha jeneralidade hahú iha loron 23 November ho diskursu husi Primeiru-Ministru Rui Araújo (video husi parte), no mós deklarasaun polítiku husi CNRT, Fretilin, Partidu Demokratiku no Frente Mudansa. Governu fo sai komunikadu imprensa ida atu sumariza diskursu husi PM.

Primeiru-Ministru fahe proposta despeza nian ba buat rua, ida mak rekerente (ba funsionamentu mákina estadu) no ida seluk mak kapitál. Nia dehan despeza kapitál ne’e inklui kategoria orsamentu Kapitál Dezenvolvimentu no Transferénsia Públiku, ne’ebé nia hateten atu investe hodi suporta diversifikasaun ekonómiku no kriasaun kampu servisu. Nia esplika katak ‘front-loading’ ba despeza kapitál – foti liu montante sustentável hosi Fundu Petróleu – ne’e nia justifikasaun tanba sira sei prodús retornu sosiál, ekonómiku no finanseiru iha médiu no longu prazu.

Maske nune’e, osan uitoan liu hosi tokon $421 hosi Transferénsia Públiku (kategoria boot liu, ne’ebé mai hosi 30% hosi total orsamentu) ne’e atu gasta ba buat sira ne’ebé sei prodús retornu ba médiu ka longu prazu:

Komisaun Parlamentár kona-ba Finansa Públiku (Komisaun C) aprezenta relatóriu ho pájina 109 (7 MB iha Portugés) ba Parlamentu inklui rekomendasaun sira hosi Komisaun Parlamentár sira seluk. Hafoin loron tolu ba debate jerál, Parlamentu ho unanimidade aprova orsamentu iha jeneralidade iha kalan 25 Novembru (governu nia komunikadu imprensa). Diskusaun barak kona-ba asuntu sira ne’ebé espesífiku no detallu no alterasaun sira sei deside iha Komisaun Eventual ne’ebé taka ba públiku, ne’ebé sei aprezenta testu úniku ida ba Parlamentu atu aprova molok 14 Dezembru.

On 5 December, after considering about 80 proposed amendments behind closed doors, the Eventual Committee issued its report (Port. original) and a Single Substitute Text (Port.) combining the Budget and Social Security laws. They accepted only about 25 of the proposed amendments, after rejecting 6 as redundant and refusing to consider 23 which would have modified the Infrastructure Fund, reduced capital spending, increased the budget envelope, or reduced appropriations for legal services, tax reform or external audit.

On Tuesday, 6 December, La'o Hamutuk hosted a public meeting on the proposed 2017 budget and Timor-Leste's economic sustainability, with presentations from La'o Hamutuk (also Powerpoint) and Timor-Leste's Central Bank (also Powerpoint) (all Tetum).

Parliament finished its debate and unanimously approved the 2017 Budget Law on 9 December, with a closing speech by the Prime Minister. Following technical revisions, it was sent to the President for promulgation or veto.

On 28 December, the President promulgated the budget and sent a message to Parliament, suggesting once again that Timor-Leste should not overspend its Petroleum Fund but should invest more in education, justice and people's living conditions, rather than large infrastructure projects.

Iha loron 5 Dezembru, hafoin hetan proposta alterasaun 80 iha enkontru ne’ebé taka ba públiku, Komisaun Eventual fó sai sira nia Relatóriu (Port.) no testu úniku (Port.) inklui proposta Orsamentu Estadu no proposta Orsamentu Seguransa Sosiál. Komisaun aseita alterasaun 25, rejeita 6 hanesan duplikasaun, no lakohi diskute 23 ne’ebé koko altera Fundu Infrastrutura, hamenus despeza kapitál, aumenta envelope fiskál, ka hamenus osan ba servisu legal, reforma fiskál, ka audit esternal.

Iha Tersa Feira, 6 Dezembru, La’o Hamutuk organiza enkontru públiku ida kona-ba proposta orsamentu 2017 no sustentabilidade ekonómiku Timor-Leste nian, ne’ebé oradór sira sei mai hosi La'o Hamutuk (mós Powerpoint) no Banku Sentrál Timor-Leste (mós Powerpoint).

Plenária parlamentu vota aprovasaun final ba Lei Orsamentu 2017 ho unanimidade iha loron 9 Dezembru, ho intervensaun husi Primeiru-Ministru. Hafoin revizaun tékniku, PN haruka proposta lei ba Prezidente Repúblika hodi hetan promulgasaun ka veto.

Iha loron 28 Dezembru, Prezidente Repúblika promulga Orsamentu Jerál Estadu ba 2017 no haruka mensajen ida ba Parlamentu Nasionál. Nia sujere katak Timor-Leste labele depende de'it ba finansia hosi Fundu Mina-Rai, no presiza investe maka’as liután iha edukasaun kuadru sira-nian, iha estabilidade setór justisa nian no mós iha sidadaun sira-nia kondisaun moris, duké antesipa investimentu públiku hodi halo infraestrutura boot hirak.



Budget rectification by the new government

The Seventh Constitutional Government took office in October 2017, following the July Parliamentary election. Although his program had not yet been accepted by Parliament, Prime Minister Alkatiri defined a new structure for his Government and submitted a proposed rectification budget (Port.) to Parliament on 9 November. La'o Hamutuk has scanned the documents and translated them to English, including an Explanation, Law and Table I (revenues), Table II (expenditures), and Table III (autonomous agencies). In mid-December, the government released Budget Book 1 (overview and tables) and Book 3A (Infrastructure Fund) with more explanation and details.

The proposed new budget increases appropriations for 2017 from $1,387 million in the original 2017 budget to $1,610 million. The $223 million in additional spending, combined with $13m in savings, will pay for:

  • $146.7m for projects contracted under the Infrastructure Fund

  • $  53.5m for paying debts, generator fuel, and other committed expenditures

  • $  36.1m for salaries and pension, some goods and services, and TL Cement

  • $    0.4m for new structures of the new Government.

See below for details of the largest line items. Total appropriated expenditures by category are as follows:

Salaries & wages209.7216.3
Goods & services395.0463.8
Public transfers421.0421.4
Minor Capital12.112.6
Development Capital349.0495.8

Using newer information on petroleum revenue and returns on investing the Petroleum Fund, the rectification budget expects Timor-Leste to receive $1,558m from these sources this year, up from $1,106m in the original 2017 budget. Although the Estimated Sustainable Income remains unchanged, this increased revenue makes it possible to withdraw $223m more from the Fund without diminishing its balance. The rectification budget uses the same figures for domestic revenues and borrowing as the original 2017 budget, and makes no estimates beyond 2017.

Orsamentu retifikativu husi Governu foun

Hafoin eleisaun parlamentár iha Jullu 2017, Governu Konstituisional da-hitu simu pose iha fulan Outubru 2017. Maske Governu ne’e nia programa la hetan aprovasaun husi Parlamentu Nasionál, Primeiru Ministru Alkatiri kria ninia estrutura foun ba nia membru Governu no submete proposta Orsamentu Retifikativu (Port.) ba Parlamentu iha 9 Outubru. La’o Hamutuk dijitaliza ona dokumentu no tradús ona ba lian inglés inklui Esplikasaun, Lei no Tabela I (reseita), Tabela II (despeza) no Tabela III (ajénsia autónoma). Iha Dezembru fulan klaran, governu publika Livru Orsamentu 1 (panorama no tabela) no Livru 3 A (Fundu Infrastrutura) ho esplikasaun no detallu.

Proposta orsamentu foun aumenta alokasaun ba tinan 2017 husi tokon $1,387 iha orsamentu orijinál 2017 aumenta ba tokon $1,610. Gastu adisionál ho tokon $223, hamutuk rezerva tokon $13, hodi selu ba:

  • Tokon $146.7 ba projetu kontratadu sira husi Fundu Infrastrutura
  • Tokon $  53.5 hodi selu ba dívida, jeradór kombustivel no despeza seluk
  • Tokon $  36.1 ba saláriu no pensaun, bens no servisu, no TL Cement
  • Tokon $    0.4 ba estrutura foun husi Governu foun.

Bele hare iha kraik detallu ba despeza montante bo’ot sira. Total despeza apropriadu husi kategoria hanesan tuir mai:

KategoriaOrijinál Retifikativu
Saláriu no retribuisaun209.7216.3
Bens no Servisu395.0463.8
Transferénsia Públika421.0421.4
Kapitál Menór12.112.6
Kapitál Dezenvolvimentu349.0495.8

Espektasaun ba orsamentu retifikativu tinan ida ne’e Timor-Leste atu simu tokon $1,558, bazeia ba informasaun foun husi reseita petrolíferu no retornu sira husi investimentu Fundu Petrolíferu, husi fonte sira ne’e to tokon $1,106 iha orsamentu orijinál 2017. Maske laiha mudansa ba Rendimentu Sustentável Estimativa, rendimentu aumenta uitoan no ida ne’e fó posibilidade atu foti liu tokon $223 husi fundu no sei la hamenus husi balansu saldu. Orsamentu retifikativu uza valor hanesan ho Orsamentu 2017 orijinál ba reseita doméstiku no empréstimu la halo estimatizasaun liu tinan 2017.


La'o Hamutuk compared its tables with the enacted 2017 budget and identified the following as the largest increases in expenditures this year:

  • $146.7 million (a 66% net increase) in non-borrowed money spent through the Infrastructure Fund. The increase includes $76m for roads, $25m for electricity infrastructure, $35m more for the South Coast Highway, $14m for Suai Airport, and $8m for bridges. (These add up to more than the total because other projects were cut.)

  • $  37.8m (up 64%) for the Directorate-General for Electricity, for generator fuel for Hera and Betano

  • $  13.7m (up 112%) for Legal Services, probably related to the maritime boundary dispute with Australia

  • $    7.0m (up 82%) for the Contingency Reserve, which can be spent on anything without additional Parliamentary approval

  • $    6.6m (up 14%) for salaries in the Ministry of Education, mostly for primary school

  • $    5.8m for "Fast Customs Clearance," a new item under Whole of Government

  • $    5.4m (up 135%) for the Counterpart Fund. The budget documents do not provide specifics, although this is probably to subsidize the private sector TL Cement project in Baucau

  • $    5.0m (up 146%) for the National Directorate for Hospital and Emergency Services, to pay past debts for overseas medical care

  • $    2.0m for "Payment of Timor Telecom," a new item under Whole of Government.

The proposal also includes a few reductions (in addition to agencies which are eliminated in the new government structure), of which the largest are:

  • $    5.5m (down 45%) for the Directorate-General for water, sanitation and urbanization

  • $    4.3m (down 85%) for Dili drainage system (due to delays in approval of the loan from China)

  • $    5.2m (down 5%) for veterans pensions

  • $    2.6m (down 71%) for education and health infrastructure

  • $    2.1m (down 15%) for the 2017 elections.

La’o Hamutuk kompara tiha ona ami nia tabela ho orsamentu 2017 ne’ebé retifika ona no identifika despeza ne’ebé aumenta boot iha tinan ne’e:
  • Tokon $146.7 (net aumenta 66%) ba iha osan (la’ós empréstimu) gastu ba Fundu Infrastrutura. Aumenta sira ne’e inklui tokon $76 ba estrada, tokon $25 ba infrastrutura eletrisidade, tokon $35 ba Autoestrada Tasi Mane, tokon $14 ba Aeroportu Suai no tokon $8 ba ponte sira. (Sira hamutuk husi total tanba hasai ona projetu seluk.)
  • Tokon $37.8 (aumenta 64%) ba Diresaun Jerál Eletrisidade, jeradór kombustivel ba Hera no Betano

  • Tokon $13.7 (aumenta112%) ba servisu jurídiku, karik relasiona ho fronteira marítima ho Austrália

  • Tokon $  7.0 (aumenta 82%) ba rezerva kontinjénsia, ne’ebé bele hasai ba kualkér buat ruma no la presiza iha aprovasaun adisionál husi parlamentu.

  • Tokon $  6.6 (aumenta 14%) ba saláriu no Ministériu Edukasaun liuliu ba eskola ensinu báziku

  • Tokon $  5.8 ba: Fast Customs Clearance” despeza foun ba Todo Governu.

  • Tokon $  5.4 (aumenta 135%) ba Fundu Kontraparte. Dokumentu orsamentu sira la fornese detallu espesífiku, maske provavelmente atu fó subsídiu ba projetu TL cement husi setór privadu iha Baucau

  • Tokon $  5.0 (aumenta 146%) ba Diresaun Nasionál Servisu Hospitalares no Emerjénsia, atu selu dívida ba atendimentu médiku iha rai li’ur

  • Tokon $  2.0 atu “Selu Timor Telecom” item foun ba Todo Governu.

Iha proposta ne’e inklui mós redusaun balun (aléinde ajénsia ne’ebé elimina husi estrutura foun governu), ida ne’ebé bo’ot mak hanesan:

  • Tokon $5.5 (tun ba 45%) ba Diresaun Jerál Água, Saneamento no Urbanização

  • Tokon $4.3 (tun ba 85%) ba sistema drainajem iha Dili, (fahe ba atrazu aprovasaun empréstimu husi China)

  • Tokon $5.2 (tun ba 5%) ba pensaun veteranu sira

  • Tokon $2.6 (tun ba 71%) ba infrastrutura edukasaun no saúde

  • Tokon $2.1 (tun ba 15%) ba eleisaun 2017.

On 15 November, Parliamentary Committee C (Public Finances) recommended not to consider the rectification budget under an expedited process for reasons which have little to do with the substance of the proposal. The plenary agreed on 20 November, as announced by Government and Parliament. On the same day, the majority opposition introduced a Censure (no confidence) Motion into Parliament because the government had not resubmitted its program within 30 days after it was rejected the first time.

Also on 20 November, President Lu-Olo promulgated Decree-Law 35/2017, the organic law describing the structure of the 7th Constitutional Government.

The normal budget debate process in Parliament takes more than a month, and  discussions on the rectification budget are being delayed by parliamentary maneuvers on both sides. Parliamentary President Aniceto Guterres is not invoking plenary sessions because he doesn't want to debate the no confidence motion or a subsequent motion to remove him as President, while the majority opposition is boycotting Committee meetings, preventing the presence of a quorum.

The State Budget for 2018 was not enacted before the year began. According to Article 31 of the Budget and Financial Management Law, the state can function without an enacted budget under a "duodecimal regime" in which 1/12 of each line item appropriation in the 2017 budget can be spent during each month of 2018. The law does not consider a change in government structure, as has just taken place. On 6 December, the Council of Ministers sent Parliament a proposed amendment to the Budget and Financial Management Law which would include revenues in the duodecimal system; the Ministers also discussed the proposed fiscal envelope for the 2018 budget.

The Minister of Finance presented the 2017 budget rectification proposal to Committee C on 11 December, as well as publishing two Budget Books on its website. However, on 12 December the Committee voted down the proposal by a 6-5 vote. The majority opposition said that the rectification budget should not be discussed before the government program is approved, and that the focus should be on the budget for 2018.

However, Parliamentary President Aniceto Guterres scheduled the rectification budget for plenary debate on 14 December, but on that day he postponed it until the following week due to security concerns. On Monday, 18 December, Parliamentary leaders decided not to take up the rectification budget first, but the President scheduled it for the next day, to be followed by discussion of the motions of no confidence and to dismiss the President.

On 19 December, following a seven-hour debate, Parliament approved the opposition's appeal of President Guterres' decision to schedule the rectification budget, effectively killing the proposal. The vote was 35-5, after most of the Fretilin and PD Members walked out.

Iha 15 Novembru, Komisaun C (Finansas Públika) husi Parlamentu Nasionál rekomenda atu la simu prosesu aselerasaun ba orsamentu retifikativu ho razaun ne’ebé ladún iha relasaun ho konteúdu husi proposta. Plenária konkorda iha 20 Novembru, Governu no Parlamentu mós anunsia. Iha loron hanesan, maioria husi opozisaun introduz Mosaun Sensura (laiha konfiansa) iha Parlamentu ho razaun governu la submete fila fali nia programa durante loron 30 nia laran hafoin dahuluk hetan rejesaun primeira vez.

Iha 20 Novembru, Prezidente Lu-Olo promulga ona Dekretu-Lei 35/2017, lei orgánika ne’ebé deskreve kona-ba estrutura Governu Konstituisional da-hitu.

Prosesu normal husi debate orsamentál iha Parlamentu lori tempu liu fulan ida, no diskusaun sira kona-ba orsamentu retifikativu ne’ebé sei pendente liu husi manobra parte rua nian. Prezidente Parlamentu, Aniceto Guterres, lakohi invoka sesaun plenária tanba nia lakohi debate kona-ba mosaun la konfiansa ka mosaun subsekuente atu hasai nia husi Prezidente, enkuantu maioria opozisaun kansela tiha reuniaun komisaun sira, hodi prevene prezensa husi quórum.

Orsamentu Jerál Estadu 2018 la aprova molok tinan ne’e hahu. Bazeia ba artigu 31 husi Lei Orsamentu no Jestaun Finanseira, estadu bele funsiona sem retifikasaun husi orsamentu , tuir “rejime duodesimal” ne’ebé 1/12 husi kada liña item ba alokasaun husi orsamentu 2017 bele uza ba kada fulan iha tinan 2018. Lei la konsidera mudansa iha estrutura governu, hanesan foin lalais akontese. Iha 6 Dezembru, Konsellu Ministru haruka proposta amendementu ba lei orsamentu ida ba Parlamentu no jestaun finanseira, ne’ebé sei inklui reseita no sistema duodecimal; Ministru sira mós diskute kona-ba envelope proposta fiskál ba tinan 2018.

Ministru Finansas aprezenta proposta orsamentu retifikativu 2017 ba Komisaun C iha 11 Dezembru, no publika livru rua kona-ba orsamentu iha sira nia website. Maibé iha 12 Dezembru, komisaun vota kontra ba proposta ho votu 6-5. Maioria husi opozisaun hatete katak orsamentu retifikativu labele diskute molok governu nia programa hetan aprovasaun, no tenke foka liu ba orsamentu Jerál ba tinan 2018 nian.

Maibé Prezidente Parlamentu Aniceto Guterres kria ajenda ba debate orsamentu retifikativu iha 14 Dezembru, maibé iha tempu ne’ebá nia kansela fali ba semana tuir mai ho razaun seguransa. Iha Segunda 18 Dezembru, lideransa parlamentár sira deside atu labele foti uluk kestaun orsamentu retifikativu , maibé Prezidente adia fali programa ba loron tuir mai, nune’e bele tuir diskusaun mosaun la-konfiansa no atu demite prezidente.

Iha 19 Dezembru, hafoin debate oras hitu nia laran, Parlamentu aprova rekursu husi opozisaun nian kona-ba desizaun Prezidente Guterres atu tau orsamentu retifikativu iha oráriu, no ida ne’e efetivamente kansela tomak proposta ne’e. Membru Parlamentu vota ho 35-5 hafoin maioria membru Fretilin no PD la’o sai husi plenária.


Parliament recessed until 8 January, and no plenary session was called before the President dissolved Parliament on 26 January. New elections will be held on 12 May. Parliament never acted on the rectification of the 2017 budget or on the State Budget for 2018, which is unlikely to be enacted before August.

Until then, Article 31 of the Budget and Financial Management Law allows spending to continue according to a duodecimal system -- 1/12 of each 2017 budget line each month. In late February, the Ministry of Finance published Budget Books detailing duodecimal appropriations for January and February 2018, totaling around $100 million each month, and a press release announcing $104.6 million in appropriations for March. According to the Transparency Portal, monthly executed spending in January and February was about $60 million per month, but it rose to $86 million (including $8 million in loan disbursements) in March.

As discussed on our web page on the Petroleum Fund, we understand that more money cannot be transferred from the Petroleum Fund without a new Parliamentary law. La'o Hamutuk estimates that the state treasury, combined with non-petroleum revenues, can support government operations for four to six months. In May or June, the state will run out of money to cover operations, and it is unclear if a dissolved Parliament can authorize transfers from the Petroleum Fund. The Central Bank is not allowed to lend money to the Government, and the shortfall by August could be more than $100 million.

Although $70 million was transferred from the Fund in May, the cash flow problem became critical in July. La'o Hamutuk has written about this issue on another web page, and we wrote a submission to Parliament about an over-broad legislative effort to address the emergency.

On 20 July, Parliament approved a law to authorize transferring $140 million from the Petroleum Fund to cover the period until a 2018 budget is enacted. La'o Hamutuk supported this legislation, as it did not revise any underlying laws. The President of the Republic asked the Court of Appeal for advice, and the Court ruled that the law did not violate the Constitution, although Judge Maria Natercia Gusmão wrote that it is unnecessary and illegal. The President promulgated it as Law No. 1/2018 of 10 August.


Parlamentu deskansa to iha 8 Janeiru, no laiha sesaun plenária ne’ebé konvoka molok Prezidente atu disolve Parlamentu iha 26 Janeiru. Eleisaun foun sei hala’o iha 12 Maiu. Parlamentu nunka halo asaun ba orsamentu retifikativu ba tinan 2017 no Orsamentu Jerál Estadu ba tinan 2018, ne’ebé sei la retifika antes fulan Agostu.

No too tempu ne’e, Artigu 31 husi Lei Orsamentu no Jestaun Finanseira permite kontinua gastu sira bazeia ba sistema duodecimal – 1/12 husi kada liña orsamentu 2017 ba kada fulan. Iha loron ikus fulan Fevreiru, Ministériu Finansas publika detallu husi livru orsamentu kona-ba apresiasaun duodecimal ba Janeiru no Fevreiru 2018, ho total besik tokon $100 ba kada fulan, no fó sai komunikadu imprensa ne’ebé fó sai katak tokon $104.6 alokasaun ba Marsu. Tuir Portal Transparénsia, despeza ezekuta ona durante Janeiru no Fevreiru maizumenus tokon $60 kada fulan, maibé sa’e ba tokon $86 (inklui tokon $8 empréstimu) iha fulan Marsu.

Hanesan diskute ona iha ami nia pájina web kona-ba Fundu Petrolíferu, ami kompriende katak osan labele transfere husi Fundu Petrolíferu sem laiha Lei foun husi Parlamentu. La’o Hamutuk estimatiza katak Tezouru estadu, kombina ho reseita non-petrolíferu, bele suporta mákina operasaun governu husi fulan haat to’o fulan neen nia laran. Iha Maiu ka Juñu, estadu sei laiha osan atu taka operasaun hirak ne’e, no sei iha inserteza se Parlamentu bele autoriza transferénsia husi Fundu Petrolíferu. Banku Central labele fó empresta osan ba governu, no sei iha défisit iha fulan Agostu ne’ebé bele liu husi tokon $100.

Maske tokon $70 transfere tiha ona husi Fundu iha Maiu, problema cash flow sei sai asuntu kritiku iha fulan Jullu. La’o Hamutuk analiza kestaun hirak ne’e iha pajina web seluk no hakerek submisaun ba Parlamentu kona-ba esforsu legislativu ne’ebé boot demais atu resolve ba situasaun emerjénsia ida ne’e.

Iha 20 Jullu, Parlamentu aprova Lei ida atu autoriza ba transferénsia tokon $140 husi Fundu Petrolíferu hodi bele kobre to’o iha periodu orsamentu 2018 retifika. La'o Hamutuk apoiu lejizlasaun ne’e tanba laiha revizaun ba lei fundamentu sira. Prezidente Lu-Olo husu atu Tribunal Rekursu atu fó opiniaun konsultiva. Tribunal konklui katak lei ne'e la viola konstitusaun, no Prezidente promulga Lei no. 1/2018 iha 10 Agostu.

State Budget for 2018

Also on 20 July, the Council of Ministers approved a fiscal envelope of $1.353 billion ($1.218 bn without loans) for the 2018 State Budget, incorporating duodecimal spending which has already occurred. On 24 July, the Ministry of Finance released a Budget Circular and the presentation from a working session on enacting the 2018 Budget. After each Ministry refined its proposal, the CoM approved a proposed budget totaling $1.279.6 billion (including $62 million in loans and $44 million carried over from 2017) on 2 August.

The proposed 2018 budget was sent to Parliament a few days later, including an Explanation of Motives (also Port.) and a proposed law and annexes (Port.). They also provided a set of budget books, of which we have scanned the overview (Port. or Tetum), Infrastructure Fund (Port.), and Human Capital Development Fund (Port.) volumes.

On 13 August, Committee C presented a report (Port.) on whether to consider the 2018 budget proposal under an urgent schedule. After discussion, the Parliamentary Plenary accepted the recommendation on a vote of 40 in favor, 0 against and 20 abstentions. Fretilin explained why they abstained. The "urgent" schedule includes holidays on 22, 26 and 30 August, will be:

  • 9 Aug: Government budget proposal received

  • 13 Aug: Discussion & vote on urgent schedule

  • 14-21 Aug: 'Public' hearings (detailed schedule)

  • 23 Aug: Each specialized committee finishes its report

  • 27 Aug: Committee C presents its report and recommendations

  • 28-29 Aug: Plenary discussion and vote on generality

  • 3-7 Sep: Plenary discussion and vote on specifics

  • 10 Sep: Final editing & transmission to the President of the Republic

On 15 August, La'o Hamutuk provided oral testimony to Committee C on the budget proposal, and we made a written submission on 20 August. The main points of our submission are:

  • Oil revenues are nearly gone; the need for diversification is urgent.

    • Alternative sectors: agriculture, light industry and ecotourism

  • Government spending should focus on access to basic services.

    • Health, Education and Clean water

  • Unsustainable levels of spending will cause lasting harm to future generations.

  • We appreciate the Government’s initiative to decrease borrowing.

  • The Tasi Mane project requires a public, independent cost-benefit-risk analysis.

Orsamentu Estadu 2018

Nune’e mós iha 20 Jullu, Konsellu Ministru aprova orsamentu fiskál biliaun $1,353(biliaun $1,218 la inklui empréstimu) ba Orsamentu Jerál 2018, inkorpora ho gastu duodecimal ne’ebé hasai tiha ona. Iha 24 Jullu, Ministériu Finansas divulga ona Sirkular ba orsamentu no aprezentasaun ba sesaun servisu kona-ba promulgasaun orsamentu 2018. Nune’e kada ministériu refina sira nia proposta, no Konsellu Ministru aprova sira nia proposta orsamentu husi biliaun $1.279 (inklui tokon $62 iha empréstimu no tokon $44 ne’ebé tranzitadu husi tinan 2017) iha 2 Agostu.

Proposta orsamentu 2018 haruka ba Parlamentu liu tiha loron balu, inklui Esplikasaun ba motivu sira, Proposta Lei no aneksu. Sira mós fornese kompletu livru orsamentál, iha ne’ebé ami ezamina ninia rezumu ba Panorama, Fundu Infrastrutura no Fundu Dezenvolvimentu Kapitál Umanu.

Iha 13 Agostu, Komisaun C aprezenta relatóriu kona-ba posibilidade atu simu proposta orsamentu 2018 iha programa ne’ebé urjente. Liu tiha diskusaun ne’e, iha plenária Parlamentu konkorda rekomendasaun ho votu 40 a favór, kontra 0 no abstensaun 20. Fretilin esplika razaun sira fó votu abstensaun. Programa “urjente” inklui loron feriadu iha 22 no 26 Agostu, sei hanesan:

  • 9 Agostu: Simu proposta orsamentu husi governu
  • 13 Agostu: Diskusaun no votasaun ba prosesu urjente
  • 14-21 Agostu: Audiénsia Públika (kalendariu detallu)
  • 23 August: Komisaun espesializadu ida-idak finaliza sira nia relatóriu\
  • 27 Agostu: Komisaun C aprezenta sira nia relatóriu no rekomendasaun
  • 28-29 Agostu: Diskusaun iha plenária no votasaun kona-ba generalidade
  • 3-7 Setembru: Diskusaun iha plenária no votasaun kona-ba espesialidade
  • 10 Setembru: Redasaun final no tranzmisaun ba Prezidente Repúblika

Iha 15 Agostu, La’o Hamutuk fó testemuña orál ba komisaun C kona-ba proposta orsamentu no ami hakerek submisaun iha 20 Agostu. Pontu prinsipál ba ami nia aprezentasaun mak hanesan:

  • Reseita husi mina no gas besik hotu ona; urjente tebes atu diversifika ita nia ekonomia ho lalais.
    • Setór alternativa: Agrikultura, Indústria ki’ik no Eko-turizmu
  • Despeza Governu nian presiza foka ba asesu servisu báziku.
    • Saúde, Edukasaun no Bee moos
  • Despeza ne’ebé la sustentável sei estraga futuru ba jerasaun aban bainrua.
  • Ami apresia Governu nia planu atu hamenus empréstim.
  • Projetu Tasi Mane labele kontinua se laiha estudu independente ne’ebé kle’an kona-ba kustu benefísiu no risku.

Committee C issued its report (Port.) on 27 August, with eight members voting to support the budget proposal and five abstaining.

The Parliamentary plenary began discussing the Budget on 27 August, with a speech by Prime Minister Taur Matan Ruak (Port.). Parliament approved the budget in generality on 29 August, with 53 votes in favor, 0 against, and 12 abstentions, and were thanked by the Prime Minister.

The debate on specifics began on 31 August. Members introduced 99 amendments, but most were withdrawn after the AMP majority rejected the first several. The Budget was passed on 7 September with 42 votes in favor, nine against, and 14 abstentions, as reported by Parliament and the Government website. It has been sent to the President, who promulgated it on 27 September with a statement and press release (Tetum), and was also announced on the government website. It was published as Law No. 2/2018 (Portuguese)  in the Jornal da Republika.

On 8 October, the Government issued Decree No. 9/2018 (Port., 20 MB) detailing how the 2018 budget is to be executed.

Secretary of State for Social Communications gave a presentation on the 2018 budget to a La'o Hamutuk/FONGTIL public meeting on 30 October.

In September, Timor-Leste's new government began preparing its budget proposal for 2019, as described on a separate web page.

2017 and 2018 State Accounts audited and reviewed

The Ministry of Finance prepared Consolidated Financial Statements for the 2017 state accounts in July 2018, and the Court of Appeals issued its Report at the end of the year. Parliament began discussing these reports in March 2019, including a report from Committee C, and accepted them on 11 March by passing Resolution 2/2019 of 20 March.

The Ministry of Finance prepared Consolidated Financial Statements for the 2018 state accounts (also Appendix) in July 2019, and the Court of Appeal issued its report at the end of the year. Parliament began discussing these reports in March 2020, including a report from Committee C (recommendations), and accepted them by passing Resolution 5/2020 of 12 June.

Audit no revizaun ba Konta Estadu nian

Ministeriu Finansas prepara Conta Jeral Estadu ba 2017 Demonstrasaun Financeiras Konsolidadas iha Julhu 2018, no Tribunal Rekursu fo sai sira ninia Relatoriu no Paraser kona-ba Conta Jeral Estadu ba 2017 iha fulan Dezembru. Parlamentu Nasional hetan relatoriu husi Komisaun C, no aseita CGE 2017 iha loron 11 Marsu 2019 ho rezolusaun 2/2019.

Ministeriu Finansas prepara Demonstrasaun Financeiras Konsolidadas 2018 (mos Appendix) iha fulan Julhu 2019, no the Tribunal Rekursu fo sai sira ninia Relatoriu no Paraser iha fulan Dezembru. Parlament hahu debate kona-ba reklatoriu sira iha Marsu 2020, ho relatoriu ida husi Komisaun C (rekomendasaun sira), no aseita sira ho Rezolusaun 5/2020 iha Junu 2020.

Documents (newest first)Dokumentu

Analysis and commentary

Analiza no komentáriu

Links to relevant topics on La'o Hamutuk's websiteLiga ba tópiku sira ne’ebé relevante iha website La’o Hamutuk


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Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
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