General State Budget for 2021 approved, in generality
The 2021 General State Budget (GSB) proposal was overall approved by the National Parliament, on December 2nd, 2020 with 44 votes in favour, and no abstentions nor votes against.
The Parliament will now consider the detailed budget and vote each article of the bill, before the final globe vote, which should take place on December 18th.
Prime Minister, in the Law Proposal presentation said that this General State Budget was “developed in response to the unprecedented challenges that our Nation faced in 2020” and that this budget “is committed to the economic growth, solving the gaps in our social protection, investing in health care and education, in a stronger workforce and in job creation”.
In terms of social protection, the 2021 GSB aims to fill the coverage gaps and reach new significant groups of individuals, namely more 45,134 beneficiaries under the Bolsa da Mãe and more near 23,000 in the case of former combatants and their families.
In the health sector, total budget support amounts to about US$ 86 million, that is, 4% of the total State budget, with a large investment in primary health care, which includes new health posts and spending on services provided for disease control, family health, medical emergencies, nutrition services, supporting the Government’s epidemiological surveillance strategy.
With regard to education, the Ministry of Education’s budget rises to US$ 111.4 million, that is, 5% of the total state budget, where approximately US$ 78.4 million is an investment in pre-school and basic education, with the aim of increasing, at least, the participation rate in basic education to 96 percentage points. For higher education , about US$ 26.4 million are proposed. The Infrastructure Fund will finance US$ 4.8 million to settle the New Polytechnic School in Baucau and prioritize the construction of the Polytechnic Institute of Aileu and Betano, and the New University City in Aileu.
At the infrastructure level, US$ 474 million from the 20201 General State Budget will be invested in development capital, including US$ 340 million from the Infrastructure< Fund. In 2021, the Infrastructure Fund will invest around 13% of the total GDP in public infrastructure. In this sector, the Government intends to guarantee access to electricity, 24 hours a day, for all citizens, at an affordable and fair price. The 2021 GSB also provides funds for the President Nicolau Lobato International Airport rehabilitation project and for the maintenance, rehabilitation and improvement of roads.
To transform the national connectivity, in 2021, US$ 41 million will be invested to install a submarine fibre optic cable with connection to the northern territory of Australia. In the 2021 budget, US$ 8.5 million is allocated from the Infrastructure Fund to invest in the Tasi Mane project and US$ 71 million to Timor GAP, contributing to the wise management of our oil resources.
Another of the great priorities of the 2021 GSB is economic development, with the Government’s policies aiming essentially to calibrate the decline in economic activity and accelerate the recovery, with support for people and companies, and support to the productive sectors development. A new tourism policy, master plan and tourism brand, identifying the growth potential of each possible location, will be developed, aiming at promoting Timor-Leste as a tourist destination in Asia-Pacific, alongside with several marketing activities, such as fairs and exhibitions. There will also be a large investment in the promotion and development of the agricultural sector as the main driver of the economy structural transformation. The Government will also invest in private sector development and capacity building in economic areas, in the design and implementation of professional training strategies and reinforcement of the commitment with professional training, aiming at a qualified workforce with access to employment and economic development.
In the institutional sector, in 2021, an expenditure of US$ 470 million is planned, a quarter of the budget, which includes the four Great Institutional Reforms – the public administration reform; tax and public financial management reform; judicial reform; and the decentralization process – which the Government is designing and implementing with the aim of improving the way the public sector is managed and functioning, and ensuring that the State functions within a legality framework and effective legal security and in a more efficient and effective manner. US$ 38 million will also be invested in the National Land Planning Plan.
The Prime Minister, at the close of the general discussion, thanked the Members of the National Parliament’s contribution, during the three days of debate and stressed the importance of the 2021 GSB to help the country out of the economic recession and to foster economic growth.
Speech In the Occasion of the Presentation of the State General Budget for 2021
