National Parliament approves the 2024 GSB to “Build a bridge to tomorrow: investing in the productive sector and in social capital”
Today, December 20th, 2023, the National Parliament approved the General State Budget (GSB) for 2024, with 41 votes in favour, 23 against and zero abstentions. The 2024 General State Budget, with the central theme “Building a bridge to tomorrow: investing in the productive sector and in social capital”, has its genesis in the strategic objectives defined in the 9th Constitutional Government's Programme and lays the foundations for achieving the central objectives outlined for the next five years, defining as priorities public investment in fundamental infrastructures and economic growth as the central and essential engine of national development.
The consolidated figure for the 2024 GSB is US$ 1.95 billion for the Central Administration, the Special Administrative Region of Oe-Cússe Ambeno (RAEOA) and Social Security, not including the Social Security Reserve Fund. Of this amount, US$ 1.83 billion is allocated to the Central Administration, US$ 60 million to the RAEOA and US$ 347.6 million to Social Security. Of the total expenditure planned for the Central Administration and RAEOA, US$ 468.8 million is directed to wages and salaries, US$ 386.3 million to goods and services, US$ 589.7 million to public transfers, US$ 34.2 million to minor capital and US$ 411 million to capital development. The Social Security budget, including the Social Security Reserve Fund, amounts to US$ 347.6 million.
The Government has outlined two fundamental pillars for the 2024 fiscal year: investing in the productive sector and in social capital, with priority being given to investment in public infrastructure, production capacity, employment, education, health, social inclusion and environmental protection. The 2024 GSB provides US$ 788.2 million for economic affairs, US$ 467.1 for social protection, US$ 140.9 million for education, US$ 66.2 million for health, and US$ 45.2 million for housing and collective infrastructure.
In the productive sector, significant investment is planned in different areas, such as public infrastructure, increasing production capacity and promoting employment. At the same time, social capital will be strengthened through investments in education, health, social inclusion and the fight against poverty.
These initiatives cover various sectors, namely agriculture, fisheries, livestock, tourism, electricity, infrastructure building, and oil and natural gas, all geared towards sustainable development. In addition, the Government intends to revise the Strategic Development Plan, channel investments into the Blue Economy, finalise land borders and speed up maritime border negotiations with Indonesia, implement administrative decentralisation and promote reforms in the health, education and justice sectors, and strengthen international relations. Also noteworthy is the intention to create the Development Bank, fight against red tape, and create a more favourable environment for investors, with a view to economic development.
The debate on the 2024 General State Budget began on December 12th, and after the final drafting process, the document will be sent to the President of the Republic for enactment.
The Government expresses its deep appreciation for the constructive debate that has taken place in the National Parliament. A debate characterised by transparency and plurality of opinions, elements that reflect the vitality of national democracy, a fundamental pillar for the country's sustainable development. In this regard, the Government welcomes the valuable contributions, proposals and suggestions made by the honourable Members of Parliament from all political benches during the Law Proposal discussion, which will contribute to a more effective implementation of this budget.
The Spokesperson of the 9th Constitutional Government, Minister Agio Pereira, stated that “the approval of the 2024 GSB represents a fundamental step in building a prosperous and sustainable future for Timor-Leste and represents the Government's commitment to boosting economic growth, strengthening government institutions and improving the well-being of citizens”.
