On March 7th, 2023, the Minister of Finance, Rui Gomes, accompanied by members of the Timor-Leste delegation from the Ministry of Finance and the Ministry of Foreign Affairs and Cooperation, held a bilateral meeting with the European Union Commissioner for International Partnerships, Jutha Urpilainen. This bilateral meeting occurred in the scope of the V United Nations Conference on Least Developed Countries (LDC5) in Doha, Qatar.
Minister Rui Gomes used this bilateral meeting to share some vital information regarding the current macroeconomic situation, the progress of the Public Finance Management Reform, the enactment of the Budgetary Framework Law, and the European Union’s Direct Budget Support to Timor-Leste.
During the meeting, which lasted twenty minutes, Minister Rui Gomes also informed Commissioner Jutta of the approval last month by the Council of Ministers of the 8th Constitutional Government, led by Prime Minister Taur Matan Ruak, of Timor-Leste’s participation in the Open Government Partnership – a multilateral initiative launched in September 2011, to ensure the Government’s specific commitment to promoting transparency, public participation, fighting corruption and using new technologies to strengthen participative democracy.
With this approval, together with the Budgetary Framework Law, the Major Planning Options Law, the Budget by Programs, and other relevant legislative initiatives, Timor-Leste’s budget transparency, budget predictability, and expenditure classification can be further promoted so that, on the one hand, reduce unemployment and poverty in the country and, on the other hand, better prepare Timor-Leste’s graduation from the group of Least Developed Countries.
Minister Rui Gomes also expressed to Commissioner Jutta the 8th Constitutional Government’s sincere acknowledgements for the full support of the European Union through the EU Ambassador in Timor-Leste, Marc Fiedrich, who launched the Public Finance Management Reform Strategy for the period 2022-2027, in the quarterly meeting between Timor-Leste and the Development Partners, last February 28th.
For her part, Commissioner Jutta expressed that the European Union will continue to support Timor-Leste’s accession to ASEAN and WTO, processes that are currently in their final stages. The Commissioner, former Finland’s Vice Prime Minister and Finance Minister, also recognised the importance of the Public Finance Management Reform being carried out by the 8th Constitutional Government.
On the issue of Direct Budget Support (DBS), after her return from Doha, Commissioner Jutta will discuss this with the team and will give a response to the Government through the European Union Embassy in Timor-Leste.
The partnership between the European Union (EU) and Timor-Leste is long-standing, and both parties work together in economic policy and development of the country. The EU is the fourth largest donor in Timor-Leste after Australia.
Concerning Direct Budget Support, which has been transferred directly to the Timor-Leste Treasury Account and is managed by the Ministry of Finance, the EU supports three essential programs, namely the Reform of Public Finance Management, through the Ministry of Finance; the support to the Decentralization Program, in collaboration with the Ministry of State Administration; and finally, the partnership with the Ministry of Health in improving nutrition in Timor-Leste. The total amount allocated to these three essential programs is nearly US$ 40 million.