Speech by H. E. the Prime Minister, Kay Rala Xanana Gusmão
Dili Court of First Instance
11 November 2026
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On November 10th, 2026, Prime Minister Kay Rala Xanana Gusmão, accompanied by the Minister of Education, Dulce de Jesus Soares, inaugurated nine new classrooms at the 12 de Outubro Branch Basic School (EBF 12 de Outubro) in Tasitolu, Dili. The ceremony took place three days after the inauguration of the Iatua Branch Basic Schools 1 and 2 in the municipality of Baucau, which was presided over by the Minister of Education on November 7th. Both projects, implemented with support from development partners, aim to improve teaching and learning conditions and expand school infrastructure capacity.
At EBF 12 de Outubro, which serves 2,056 students, the construction of nine classrooms will allow the school to reduce its daily operations from three shifts to two, starting in the 2027 academic year. Previously, the school had 12 classrooms, including three temporary structures, and classes were approximately 50 students due to insufficient facilities.
The project resulted from collaboration between the Ministry of Education and development partners, namely Dreams Asia, the Octava Foundation, and Classroom of Hope, with support from partners in Australia and Singapore.
During the ceremony, the Prime Minister urged students and parents to value the new facilities and the learning opportunities they offer. He also addressed teachers, emphasising their responsibility for educating and shaping future generations.
The new facilities were built using a modular system incorporating blocks made from recycled plastic and include sanitation facilities. Construction took place between August and October 2026 and represents a pilot project for the application of this technology in Timor-Leste. According to Classroom of Hope, approximately 13 tonnes of recycled plastic were used to construct six classrooms using a method that reduces construction times and repurposes plastic waste as building materials.
On the occasion, the Minister of Education highlighted the use of alternative solutions to address school infrastructure needs and shorten construction timelines.
“Building schools using traditional methods often takes a long time. However, with this new construction method, classrooms can be completed in less than two months. This project uses recycled plastic materials to produce building blocks, also providing students with a practical example of the importance of environmental sustainability,” explained Dulce de Jesus Soares.
The Minister thanked all organisations involved, including the National Directorate of School Infrastructure, and urged the educational community to preserve the new facilities. She also noted that this experience would enable the Ministry of Education to assess the application of this construction model in future interventions.
Also attending the inauguration of the Iatua EBF 1 and 2 in Baucau, held on November 7th, were the President of the Baucau Municipal Authority, Veneranda E. M. Lemos; the Goodwill Ambassador for Education, Kirsty Sword-Gusmão; and the representative of the organisation Spend It Well, Nandy Gurr.
The new school was built with support from Spend It Well and its partners, making it the 31st school the organisation has constructed in Timor-Leste. According to the Minister of Education, the project was funded by contributions from various donors and community-led fundraising initiatives.
During the ceremony, Dulce de Jesus Soares expressed her gratitude for the organisation’s support and emphasised the school community’s responsibility for using and maintaining the new facilities.
“Today, you have a beautiful new school building, but the remaining elements needed to provide quality education are in your hands. I trust that you will manage this school appropriately and efficiently, ensuring compliance with class schedules, maintaining teaching quality, and properly managing the budget, data, documentation, and the school itself,” stated the Minister.
Nandy Gurr, the representative of Spend It Well, thanked the donors who contributed to the school’s construction and urged teachers and students to use and preserve the new facilities responsibly.
Both inaugurations are part of the Ministry of Education’s efforts to address school infrastructure construction and rehabilitation needs through collaboration with development partners and local community participation.
On Wednesday, 11 November 2026, in Dili, the National Parliament approved, in general terms, the proposed 2027 General State Budget (GSB) law, presented by the 9th Constitutional Government, with 41 votes in favour, 0 votes against, and 23 abstentions, following three days of parliamentary debate on the Government’s budgetary priorities and options for the coming year.
Under the theme “Strengthening Resilience through Transformation: Diversifying the Economy for a Sustainable Future”, the proposal sets out a consolidated overall budget of US$ 2.5685 billion.
The budget proposal of the 9th Constitutional Government sets out economic diversification, productive investment, job creation, improvements in public service delivery, and public financial sustainability as its main priorities, in line with the Government Programme and the Strategic Development Plan 2011–2030.
At the opening of the parliamentary debate on November 9th, Prime Minister Kay Rala Xanana Gusmão emphasised the need to ensure rigorous and responsible management of the State’s financial resources, to strengthen national productive capacity, and to progressively reduce dependence on petroleum revenues.
The Head of Government also highlighted that the budget proposal was prepared using a policy-led approach over a five-year horizon, linking financial allocations to programmes and expected results, thereby enabling a more rigorous assessment of public resource utilisation.
The 2027 GSB provides for US$ 535.3 million in public investment, of which US$ 505.8 million is earmarked for development capital projects. Key investment priorities include infrastructure, agriculture, tourism, health, education, social protection, and local development.
The proposal also includes measures to improve the efficiency of public spending and to boost domestic revenue, including public financial management reforms and support for private-sector development, all aimed at diversifying sources of economic growth.
The budget further allocates resources for the 2027 presidential elections, the potential holding of municipal elections, and the commencement of preparations for Timor-Leste’s ASEAN Chairmanship in 2029.
The draft law was submitted to the National Parliament on October 1st, 2026, and reviewed by the relevant parliamentary committees before the debate in general terms, held between November 9th and 11th.
Following its approval in general terms, the proposal will proceed to detailed debate and voting, scheduled to begin on November 24th. The deadline for submitting proposed amendments is 5:00 p.m. on November 13th.
After the detailed debate, the final overall vote will take place, after which the diploma, if approved, will be submitted to the President of the Republic for promulgation.
Speech by H. E. the Prime Minister, Kay Rala Xanana Gusmão
National Parliament, Dili
9 November 2026
On Tuesday, November 10th, 2026, in Dili, the Minister of the Presidency of the Council of Ministers, Agio Pereira, met with the Chief of the Royal Thai Armed Forces, General Ukris Boontanondha, as part of his official visit to Timor-Leste from November 10th to 12th. The meeting was followed by a visit to the former INTERFET heliport, adjacent to the Nicolau Lobato Presidential Palace, where the future INTERFET Memorial is scheduled to be established.
During the meeting, Minister Agio Pereira welcomed the Thai delegation and presented the project’s historical background, concept, and main objectives. The project aims to preserve the memory of the International Force for East Timor (INTERFET) and to recognise the contributions of the 22 countries that participated in the 1999 mission, which proved decisive in restoring peace and security following the Popular Consultation.
The Minister explained that the project aims to transform the former heliport into a space of historical, educational, cultural, and tourist value by rehabilitating existing structures, constructing a commemorative monument, and creating exhibition spaces, memorial gardens, and interpretive trails. The memorial also aims to promote peace education, historical research, and international cooperation, while serving as a new cultural and tourist landmark in Dili.
Agio Pereira expressed his gratitude for the confirmation of Thailand’s participation in the Core Group of Strategic Partners of the INTERFET Memorial Project, emphasising the importance of involving participating nations in developing the initiative and preserving its historical memory.
General Ukris Boontanondha expressed Thailand’s commitment to the Memorial’s realisation. At the conclusion of the meeting, the Chief of the Royal Thai Armed Forces presented Minister Agio Pereira with a photograph documenting Thai forces’ participation in the INTERFET mission in 1999, intended for inclusion in the future Memorial’s historical and exhibition collection. The gesture represents an initial contribution towards collecting historical materials associated with Thailand’s participation in the mission.
Following the meeting, General Ukris Boontanondha and his delegation visited the site designated for the Memorial, where they received a briefing on the proposed layout and key planned interventions, including the restoration of the former control tower, the conversion of the hangars, the construction of the commemorative monument, and the creation of memorial gardens, visitor routes, and historical interpretation spaces.
General Ukris Boontanondha’s official visit also includes institutional meetings and military cooperation activities. Prior to meeting Minister Agio Pereira, the Thai official paid a courtesy visit to the Chief of General Staff of the F-FDTL at the Timor-Leste Defence Forces Headquarters in Dili.
A meeting with Prime Minister Kay Rala Xanana Gusmão is scheduled for November 11th, followed by visits to military facilities and historic sites in Metinaro, Manatuto, and Baucau. The itinerary includes the Peace Operations Support Training Centre and the Heroes’ Garden in Metinaro, the former PHILBATT position in Manatuto, and the Land Component Base and Baucau Airfield, where the Thai contingent THAIBATT was deployed during the international mission. The official visit concludes on November 12th following visits to Cristo Rei and Dolok Oan in Dili.
The meeting and Thailand’s involvement in the INTERFET Memorial Project reaffirm the bonds of friendship and cooperation between the two nations and their joint commitment to preserving the memory of the 1999 international mission.
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The Vice-Prime Minister, Coordinating Minister for Social Affairs and Minister of Rural Development and Community Housing, participated in the 36th Meeting of the ASEAN Socio-Cultural Community Council (ASCC Council), in his capacity as Timor-Leste’s ASCC Council Minister. The meeting was held under the Philippines’ 2026 ASEAN Chairship.

The meeting reviewed progress in implementing the ASCC Strategic Plan and the outcomes of the conclusion of the ASCC Blueprint 2025. Discussions covered regional priorities relating to inclusive development, social protection, education, youth, gender equality, migrant workers’ rights, resilience and environmental sustainability.
One of the key outcomes was the launch of the ASCC Planning, Monitoring, Evaluation and Learning (PMEL) System, alongside the enhancement of the ASEAN Database for Monitoring and Evaluation (ADME 2.0), aimed at strengthening the monitoring of results and implementation of regional commitments.
The Council also considered the outcome documents to be submitted to the 49th ASEAN Summit, comprising 11 documents for adoption and 48 documents for notation by ASEAN Leaders. These documents cover areas such as social protection, family development, foundational learning, youth, poverty reduction and rural development.
Regarding Timor-Leste’s integration into the ASCC, the meeting noted the completion of the country’s accession to the six legal instruments under the socio-cultural pillar: the ASEAN Agreement on Disaster Management and Emergency Response (AADMER); the Establishment Agreement of the AHA Centre; the Establishment Agreement of the ASEAN Centre for Biodiversity; the ASEAN Agreement on Transboundary Haze Pollution (AATHP); the Charter of the ASEAN University Network (AUN); and the Establishment Agreement of the ASEAN Centre for Active Ageing and Innovation (ACAI).
The meeting also noted Timor-Leste’s readiness to assume chairmanship responsibilities in ASEAN sectoral bodies, namely in the labour sector through the ASEAN Labour Ministers’ Meeting (ALMM), the Senior Officials Meeting on Labour (SLOM) and the SLOM Working Group, during the 2028–2030 period; and in the disaster management sector through the ASEAN Committee on Disaster Management (ACDM) and the ASEAN Ministerial Meeting on Disaster Management (AMMDM) in 2033.
Timor-Leste’s participation reaffirms its commitment to actively contributing to the implementation of the ASCC Strategic Plan and to building an inclusive, resilient and people-centred ASEAN Community.
On Monday, November 9th, 2026, the 9th Constitutional Government, led by Prime Minister Kay Rala Xanana Gusmão and accompanied by members of the Executive, presented the 2027 General State Budget (GSB) law proposal to the National Parliament in Dili, with a consolidated global total of US$ 2.569 billion. The presentation marked the start of the parliamentary debate in general terms, which ran until November 11th, during which the Government’s main priorities and budgetary options for the coming year will be discussed.
Under the theme “Strengthening Resilience through Transformation: Diversifying the Economy for a Sustainable Future”, the 2027 draft budget aims to consolidate the national economy, improve public service delivery, create employment opportunities, and reduce dependence on petroleum revenues, in line with the Programme of the 9th Constitutional Government and the Strategic Development Plan 2011–2030.
Addressing Members of the National Parliament, the Prime Minister said: “Through this budget proposal, we aim to consolidate our economy, strengthen public service delivery, and expand opportunities for progress and well-being for Timorese families across the country.” He further emphasised that the Government’s mission “is to manage the State’s financial resources—substantial yet finite—with discipline, sustainability, transparency, and accountability, preparing the country not only for 2027 but also for the challenges of subsequent years in an increasingly uncertain and demanding world.”
The Head of Government acknowledged progress in infrastructure development and public services but warned of persistent poverty and inequality, particularly in rural communities. He noted that the non-oil economy grew by 4.3% in 2025 and that the proportion of the population living below the poverty line fell from 48.4% in 2014 to 37% in 2024, according to the recent Living Standards Survey.
Despite this progress, he stressed the need for more effective responses to family hardship, saying: “The Government has not lacked effort in combating inequality. But effort alone does not comfort those who suffer. We must do more and do better. The 2027 General State Budget is an expression of that very commitment.”
The budget proposal allocates US$2.487 billion to the Central Administration and US$ 56.1 million to the Special Administrative Region of Oe-Cússe Ambeno (RAEOA). The Social Security budget is estimated at US$186.55 million.
The consolidated global amount represents a 7.4% increase compared with the 2026 Rectified Budget. Public investment totals US535.3 million, of which US$ 505.8 million is allocated to development capital projects. Conversely, the allocation for goods and services has been reduced by 19.8% to US$550.3 million.
The Prime Minister explained that this option aims to prioritise productive investment and control operational expenditure. He also highlighted that the budget was fully prepared using a policy-led approach over a five-year horizon, linking financial allocations to programmes and expected results.
In this context, he stated that “every budget allocation is linked to a policy, a programme, and expected results. No expenditure will continue simply because it ‘has always been there’, as all spending will be subject to review.”
For 2027, the Government forecasts non-oil economic growth of 4.6% and inflation of around 1.8%, with these projections dependent on the capacity to implement public policy and on international economic developments.
Among the priorities presented, the Government proposes US$956.9 million for economic affairs, including infrastructure and the productive sectors. Agriculture receives US$37.8 million, a 21% increase from the previous budget, while tourism receives US$13.1 million, up 31%.
The budget also allocates US$244.8 million to new policies in the petroleum and mineral sector, including support for TIMOR GAP for the Kuda Tasi and Jahal projects and for advancing Greater Sunrise, as part of the strategy to leverage natural resources and promote economic diversification.
In infrastructure, allocations include US$345.7 million for roads and bridges, US$157.6 million for electricity, and US$23.5 million for water and sanitation. The Government intends to continue ongoing projects, improve maintenance of existing infrastructure, and enhance access to markets and public services.
In social sectors, the proposal foresees US$182.6 million for health, a 17% increase, and US$194.2 million for education, an 11% increase compared with 2026. Social inclusion receives approximately US$367 million, covering support for National Liberation Combatants, social security, and assistance to vulnerable families. Allocations also include US$24.7 million for school feeding and US$11.7 million for maternal and child support, primarily through the Bolsa da Mãe (Mother’s Allowance) programme.
Local development and decentralisation are also budget priorities, with US$148.1 million allocated to the 13 municipalities, US$22.9 million to the National Village Development Programme (PNDS – acronym in Portuguese), and US$33.8 million to the Integrated Municipal Development Programme (PIGD – acronym in Portuguese).
Regarding public financial sustainability, the Prime Minister emphasised the need to strengthen national productive capacity, increase domestic revenues, and improve the efficiency of public spending to progressively reduce reliance on the Petroleum Fund. For 2027, domestic revenues are projected at US$298.6 million, a 10% increase, while efficiency measures planned across 62 State entities are expected to deliver annual savings of US$53.6 million.
The Head of Government argued that the drawdowns from the Petroleum Fund must be directed towards investments that drive economic growth, enhance public services, and generate new revenue streams.
“Our justification for using these savings is clear: to invest in productive capacity and public services. But this creates an unavoidable obligation to demonstrate results, control costs, and develop new revenue streams. No future return can exempt us from this responsibility,” he stated.
The Prime Minister further stressed the need to continue public financial management reforms, improve revenue mobilisation, and ensure responsible resource management over the medium and long term. In this context, he noted ongoing preparations to introduce a Value Added Tax (VAT) at a proposed rate of 5%, starting in 2028, subject to approval by the National Parliament and the creation of the necessary implementation conditions.
“Protecting our national savings requires consistent decision-making over several years. The reforms embedded in this Budget must be implemented, and their outcomes must guide future choices,” he underscored.
As part of national responsibilities planned for 2027, the budget also includes the resources required for the presidential elections, the potential holding of two or three municipal elections, subject to structural readiness, and the initiation of logistical and infrastructure preparations for Timor-Leste’s ASEAN Chairmanship in 2029.
In the concluding section of his address, the Prime Minister reaffirmed the Executive’s commitment to providing clarifications to Members of Parliament and to reviewing recommendations put forward during parliamentary debate. “Scrutiny is part of our responsibility to the Timorese People. This debate must serve to refine choices and strengthen outcomes,” he declared.
The Head of Government concluded with an appeal for public investment to deliver concrete benefits for the population: “Let us make 2027 a year in which a larger share of our investment translates into productive activity, in which more public services reach those who need them, and in which more Timorese families can see a secure future in their own country.”
The law proposal was submitted to the National Parliament on October 1st, 2026, and was then reviewed by parliamentary committees, which held hearings between October 13th and 23rd. The debate in general terms will continue through November 11th. After approval, the bill will proceed to detailed debate and voting, beginning on November 24. Once this phase is complete, the bill will undergo a final overall vote, after which it will be submitted to the President of the Republic for enactment.