Government presents the 2021 General State Budget to the National Parliament
The 8th Constitutional Government presented today, November 30th, 2020, in the National Parliament, the 2021 fiscal year General State Budget (GSB).
The 2021 General State Budget presents a series of methodological changes that aim to bring the budget closer to the international best budgetary practices, improving the conceptual quality of the General State Budget, harmonizing the presentation of information and increasing its transparency. Expenditure of the General State Budget is now presented and specified by programs, in addition to the already used organic and economic classifications. This new form of presentation makes it possible to provide more information to National Parliament, specifically on the objectives of budget allocations, together with information on the author of the expenditure (organic classification) and the type of expenditure (economic classification).
Prime Minister, Taur Matan Ruak, stated, in his speech, that this State Budget “was developed in response to the unprecedented challenges that our Nation faced in 2020” and that his “Government has formulated this budget to revitalize our economy, protect and invest in our People, and provide our young people with opportunities to enter into society to make their dreams come true”.
“The State Budget expects to spend nearly US$ 1.895 billion in total, of which about US$ 9.1 million will be contributed by development partners. This budget is 27% higher than last year’s revised budget and is equivalent to about three quarters of our total GDP. In all, our Government will spend about US$ 1,400 dollars for each Timorese citizen. What we spend must mean a return in value. It has to restore our economy and it has to satisfy the needs and expectations of our citizens”.
Taur Matan Ruak, stated that “the Government has already implemented policies for stabilization and has decided to pursue an Economic Recovery Package to restart the economy”.
Adding that “our agenda for 2021 will recover better and focus on creating jobs for all, with targeted and sustainable investments that strengthen the average income of families, build resilience and generate equitable growth” and that the State Budget for 2021 it is committed to economic growth” and that “the State Budget for 2021 is committed to economic growth, resolving gaps in our social protection, investing in health care and education, in a stronger workforce and in job creation”.
The Head of Government ended his speech, stating that “it will take a political commitment to guide our country forward and find common ground to identify as many policies as possible that can achieve the much needed progress. Today is our time to build a better Timor-Leste for everyone”.
The GSB comprises the Central Administration Budget, the Special Administrative Region of Oe-cússi Ambeno Budget and the Social Security Budget.
The expenses of Central Administration’s bodies and services amount to US$ 1,797.2 million and their budget allocations are divided as follows, according to their economic classification: US$ 228.2 million for Salaries and Wages; US$ 397.3 million for Goods and Services; US$ 694.9 million for Public Transfers; US$ 58.8 million for Minor Capital; US$ 417.7 million for Development Capital.
Social Security’s expenditure amounts to US$ 177.3 million and expenditure by the Special Administrative Region of Oe-cússi Ambeno (RAEOA) amounts to US$ 127.0 million. The RAEOA’ s expense budget allocations are divided as follows, according to their economic classification: US$ 11.1 million for Salaries and Wages; US$ 23.8 million for Goods and Services; US$ 4.3 million for Public Transfers; US$ 2.4 million for Minor Capital; US$ 85.5 million for Development Capital.
The 2021 State Budget’s Law Proposal overall debate takes place in the National Parliament until December 2nd. National Parliament will then overall vote the Budget bill. The specialty discussion and vote, in which each article of the government proposal is analysed in detail, begins on December 4th and must be concluded by December 18th, with the final overall vote.
Speech In the Occasion of the Presentation of the State General Budget for 2021
