Government decides six priorities and a US$ 1.5 billion budget ceiling for the GSB 2022
In the National Seminar "Budgetary Days for the 2022 General State Budget", the Government of Timor-Leste identified 6 (six) important areas that will be the priorities for the Government in fiscal year 2022. The 6 priority areas are: (i) Social Capital (Education, Vocational Training and Health); (ii) Housing and Social Inclusion; (iii) Productive Sector (Agriculture, Tourism), Environment and Connectivity; (iv) Private and Cooperative Sector Development; (v) Rural Development; and (vi) Good Governance.
In addition, the Government also agreed on the budgetary ceiling for the 2022 General State Budget, in the amount of US$ 1.5 billion, to finance the 6 priority sectors, with the objective of achieving quality development and inclusive and sustainable economic growth.
The Government took this decision at the National Seminar "Budget Days for the 2022 General State Budget", chaired by the Prime Minister, Taur Matan Ruak, and held recently at the Ministry of Finance building.
In his closing remarks, the Prime Minister said "Today we have decided on the six priorities and the fiscal ceiling of US$ 1.5 billion for the budget. This exercise is not easy but through the effort of rationalisation and vision for the future, I believe we can implement it. I also ask all ministerial lines that we all follow what we have decided here.
In the 2021 General State Budget, the 8th Constitutional Government started the implementation of the Budget by Programs in a complete manner - a transition from the Budget by Items, which has been implemented since Timor-Leste regained its independence, 19 years ago. This policy aims to ensure a public service that is prudent and socio-economically based, so as to ensure real results from execution, not just percentages of execution.
An important element of this 2022 GSB will be to see how Timor-Leste recovers its economy, which in the last four years has faced three recessions. The recovery is still happening, according to our plans, because Timor-Leste started 2021 with the COVID-19 pandemic and natural disasters, putting the country in a situation of public calamity".
"I hope that in the coming year there will be no other negative surprises, so that we can start to recover, with the transformation of the productive sectors of the economy, namely Agriculture and Tourism, Housing, Social Capital (Education, Health, Social Protection) and Institutional Reform. Through investment in these productive sectors, we will be able to create decent jobs, in order to benefit families and communities", stated the Minister of Finance, Rui Augusto Gomes.
On June 23rd, 2021, the Council of Ministers approved the draft Deliberation with the Rationalization Criteria for the Programmatic Structure of the 2022 General State Budget, to which the Government has already made several amendments, with the objective of improving the efficiency and effectiveness of budget execution and also improving the capacity to monitor and control the implementation of programmes and activities suggested by the Government.
Furthermore, the National Parliament, in the Plenary Session on July 6th, 2021, approved overall the Law Proposal no. 27/V/3ª - Framework of the General State Budget and Public Financial Management, with 37 votes in favour (61%), 12 votes against and 11 abstentions..
This Law Proposal introduces eleven (11) budget principles which are: unity and universality; annuality and multi-annuality; budgetary stability and sustainability; economy, efficiency and effectiveness; transparency; accountability; intergenerational equity; programme budgeting; specification; non-compensation; and, finally, non-consignment. The Government has also made substantial changes in some aspects that are essential to the budgetary framework and management of public finances, with the aim of strengthening the relationship between planning and budgeting, through results-focused programme budgeting.
Soon, the Ministry of Finance and the National Parliament's Committee C, which deals with Public Finance matters, will hold the detailed discussion, which will allow clarifications and agreements to be reached, both at the Parliament level and at the Government-Parliament relationship level, before the Law Proposal returns to the Plenary for discussion and final overall approval.
