Vice Minister of Finance participates in a debate on Economic Sustainability organized by IDN
Vice Minister of Finance, Sara Lobo Brites, participated in the National Defence Institute (IDN) “Great Debate”, on “Economic Sustainability in Timor-Leste”, held on August 25th, 2020, in Palácio Nobre, in Lahane, as part of the IDN 10th anniversary celebration.
The IDN’s Great Debate took place on August 25th and 26th, and besides the Economic Sustainability’s, themes such as “Security and National Defence”, “Strategic Challenges of the COVID-19 Impact” and “National Education Policy” were also discussed.
Sara Lobo Brites, who served as acting Minister of Finance for two years, addressed two specific issues: “reasons to establish an economic sustainability policy for Timor-Leste” and “the necessary means to achieve economic sustainability.”
Vice Minister said that “after the first decade of independence, the country has begun a process of sustainable social and economic development based on the 2011-2030 Strategic Development Plan, which aims at transforming Timor-Leste into a “prosperous and strong nation with medium-high incomes”. Thus, “the ongoing reforms and priorities of the current Government are aligned with the 2011-2030 Strategic Development Plan, to better achieve this goal.”
Vice Minister also highlighted that “fiscal sustainability is a major challenge that the country faces at this moment.” In this context, she said that “as the General State Budget is largely financed by revenues from the Petroleum Fund, reforms are underway to increase domestic revenues, thus reducing dependence on the Petroleum Fund.”
Vice Minister also stated that “the Timorese economy is characterized by a high dependence on public spending, the prevalence of the non-formal sector and low level of investment in the private sector”, “therefore, it is necessary to diversify the economy, including sectors which have greater potential such as tourism, industry and agriculture”. For this, “a favourable environment for private sector investment must be created and fiscal sustainability ensured, including control and efficiency in public spending”.
Vice Minister defended the three percent level of Estimated Sustainable Income to finance the General State Budget, as stipulated by the Petroleum Fund Law, which provides for a sensible management of petroleum funds, for the benefit of current and future generations.
Lastly, Vice Minister of Finance stated that “the Government is committed to ensuring and guaranteeing the country’s economic sustainability in the future, and for that to happen, it counts on the support of the different layers of Timorese society, to achieve this goal.”
