Minister of State and of the Presidency of the Council of Ministers and

Official Spokesperson for the Government of Timor-Leste

 Dili, December 19th, 2015

2016 General State Budget, more than just the numbers

The 2016 General State Budget, given its final approval last night, sets out the allocation of public funds to be used next year to serve the State and the people of Timor-Leste. Whilst much of the focus in the media has been on the numbers, it will be the reforms and initiatives introduced in this budget’s development and established to guide its implementation that will make a significant impact on the quality of spending undertaken in 2016.

The Sixth Constitutional Government’s Budget Performance Reforms shaped the development phase of the 2016 Budget and will now drive the monitoring and evaluation of expenditure to ensure that Timor-Leste’s public resources are used as efficiently and effectively as possible.

The quality of planning in the 2016 Budget has been strengthened. This year all Ministries, Agencies and Institutions were required to make submissions setting out specific programs and activities and presenting a transparent and justifiable link between these and their associated budgets. Budget Book 2, available online at the Ministry of Finance website, now contains Annual Plans that include a description of programs and activities, associated key indicators, modes of verification, baseline data, desired outcomes and a specific associated budget. In the budgetary process so far, this information has been used to justify allocation of funds. Now, with these amounts finalized, the plans will guide implementation, transparently showing baseline data and expected outcomes that allow public scrutiny to assess if commitments made are being fulfilled.

Another aspect of the reform is the granting of greater autonomy to the entities that have administrative and financial autonomy written into their statutes. These entities in 2016 will have responsibility to implement the funds allocated to them, with their budget management subject to control and inspection procedures already provided for in the Law on Budget and Financial Management.

This step is to encourage higher quality service delivery, a more efficient management of public finances and greater accountability of public officials. The budgets of the autonomous entities in 2016 will be implemented using the Financial Management Information System to ensure the monitoring and transparency of spending.

Spokesperson for the Sixth Constitutional Government, Minister of State Agio Pereira noted “the 2016 Budget with its rigorous planning, inclusionary approach, focus on outcomes and reforms to improve implementation, seeks to maximize the effectiveness of every dollar spent. The ultimate goal is to serve the needs of our people. Now that it has been fully approved by National Parliament, the Government will go into the New Year maintaining its mission to ensure high quality expenditure and optimal service delivery with the resources allocated.”