Government approves 2023 State Budget Proposal with an amount of US$ 3,16 billion
The Minister of Finance, Rui Augusto Gomes, presented yesterday, September 15th, 2022, to the Council of Ministers, the 2023 General State Budget (GSB) Draft Bill, with a value of US$ 3.16 billion, which the Government will distribute to 109 State entities that are part of the budgetary perimeter in 2023. This draft bill was approved by the Council of Ministers.
The overall amount of US$ 3.16 billion represents a reduction of 8%, or US$ 264 million, compared to 2022 rectifying GSB.
The overall expenditure, amounting to US$ 3.16 billion, is composed of: the Central Administration budget – US$ 2.8 billion (this amount includes the National Liberation Combatants Fund, worth US$1 billion); the Social Security budget, worth US$ 235.7 million; and the RAEOA budget, worth US$ 120 million. The overall expenditure amount of this Draft Bill for the 2023 GSB is equal to the overall expenditure amount foreseen in the Law of Major Planning Options for 2023, enacted last month by the President of the Republic, José Ramos-Horta.
The 2023 budget proposal will be used to fund 49 programs, with 275 main measures, organized into 16 strategic areas: Agriculture, Livestock, Fisheries and Forestry; Economy and Employment; Tourism; Rural Development and Housing; Environment; Petroleum and Minerals; Electricity and Renewable Energy; National Connectivity; Water and Sanitation; Education and Training; Health; Social Inclusion and Protection; Culture and Heritage; State Reform; Defence and National Security; International Relations and Foreign Policy.
Social Capital Sector with 36% allocation
The distribution of the aggregate ceiling of the Central Administration Budget in the 2023 GSB is based on the important sectors of the Strategic Development Plan: the Social Capital Sector, which includes the areas of Health, Education and Social Protection, receives an allocation of US$ 771.7 million, or 36%. Next comes the Institutional Framework Sector, which receives an allocation of US$ 706.1 million, or 33%. The Infrastructure Development sector receives a budget allocation of US$ 380.3 million, or 18%, and the Economic Development sector receives an allocation of US$ 230.6 million, representing 11% of the total budget.
Nutrition Programme receives a budget allocation of US$ 10 million
In the 2023 GSB draft Bill, the Government also proposes to the National Parliament a budget allocation for the Nutrition Program, amounting to US$ 10 million. This represents a four-fold increase, or four hundred per cent (400%), compared to the budget allocated for the Nutrition Programme in the 2022 GSB.
Submission of the 2023 GSB Draft Bill to the National Parliament
With this approval, the Government will finalize the General State Budget Books, including its Tables, and will officially submit the 2023 GSB draft Bill to the National Parliament on October 3rd, so that it can be discussed and approved during the month of November, before being sent to the President of the Republic, for analysis.
This schedule is following the spirit of the new Budgetary Framework Law, which was enacted by the outgoing President of the Republic, Francisco Guterres Lú Olo, last February. This framework law is one of the bases for Public Finance Management Reform in Timor-Leste – an important achievement of the mandate of the 8th Constitutional Government, led by Prime Minister H.E. Taur Matan Ruak.
