In the context of the debate on the 2025 General State Budget, the 9th Constitutional Government, under the leadership of Prime Minister Kay Rala Xanana Gusmão, reaffirms its commitment to consolidating the achievements of its first year in office and to implementing an ambitious development plan aimed at improving the well-being of the population and promoting the country’s economic growth. This budget, prepared under the slogan “Investment in Strategic Infrastructures, Strengthening the Economy and Improving the Welfare of Citizens”, reflects the Government’s determination to tackle the country’s challenges in a structured way and focused on concrete results for the population.
Since taking office on July 1st, 2023, the 9th Constitutional Government has initiated a series of structural reforms and development programmes in various strategic areas to strengthen the foundations for sustained growth.
The following are the main advances, highlighting the ongoing efforts to transform Timor-Leste into a more prosperous, secure, and resilient country.
INFRASTRUCTURES
The 9th Constitutional Government has significantly accelerated national infrastructure development, which has remained practically stagnant for years. Various road and bridge improvements and construction works have been started or completed, as well as the construction and reinforcement of stream protection walls, drains, and ditches in the capital and various parts of the country. These projects aim to improve national connectivity and mitigate flood risks. 
In addition to these essential interventions, the Government has launched projects to build water supply systems and undertaken various initiatives to strengthen and maintain the national electricity grid, ensuring citizens have access to quality services.
The Government also remains committed to improving Timor-Leste’s connectivity with the world to facilitate economic development and tourism. In parallel, the recent establishment of the submarine fibre optic cable linking Timor-Leste to Darwin, Australia, marks a significant advance in the country’s digital infrastructure. This cable has the potential to transform internet access, improve economic indicators, and develop new industries that would previously have been impossible.
At the same time, a Reforestation Programme was activated in three municipalities to strengthen climate resilience and promote environmental sustainability.
By adopting a strategic approach to infrastructure, the Government aims to improve the population’s living conditions and increase the capacity to mitigate natural disasters. It also aims to boost economic growth and private investment, generate new jobs, and promote the development of the private sector. This set of initiatives represents a commitment to sustainable development and building a more dynamic and resilient economy, in contrast to the lack of investment and stagnation that characterised the previous Government period.
ECONOMY
In economic development, the priority is strengthening the private sector, particularly agriculture and small and medium-sized enterprises (SMEs), recognising that sustainable economic growth must be driven internally. Significant investments have therefore been allocated to productive sectors such as agriculture, fishing, and livestock farming, emphasising the distribution of boats and equipment in the fisheries sector and signing a memorandum of understanding in the livestock sector, strengthening livestock control and promoting sustainable practices. The aim is to increase local production, reduce dependence on imports and encourage innovation, thus promoting a more robust and resilient economic ecosystem. 
The Government has adopted a series of initiatives to boost the agricultural sector, most notably the rehabilitation and construction of irrigation systems and the distribution of modern agricultural equipment. A diagnostic study of coffee-growing areas has also been carried out to expand this vital crop. These actions aim to increase productivity, ensure food security throughout the country, promote sustainable development in rural areas, and create a solid base for the national economy.
To support global and regional economic integration, the Government has been working on implementing strategic reforms and strengthening national capacities, which have allowed Timor-Leste to officially become the 166th member of the World Trade Organisation (WTO) and is on the path to achieving full membership into ASEAN, scheduled for 2025. Bilateral agreements have been signed with China and Indonesia, among others, to boost trade and economic relations. This commitment to economic integration includes the development of policies that create a favourable and competitive environment capable of attracting investment and promoting long-term growth. 
The Government has also encouraged the organisation of business forums in Timor-Leste and participation in international forums, intending to increase the possibilities for foreign investment and expand opportunities for national companies, fostering innovation and creating job opportunities. These initiatives aim to strengthen the national economy and position Timor-Leste as an attractive and reliable partner in the region, boosting economic growth in an inclusive and sustainable manner. Regarding mobility and work opportunities abroad, agreements were signed with Portugal, Japan, and Brunei, and progress was made with expanding the seasonal work programme with Australia.
SOCIAL SECTOR
The 9th Constitutional Government has been conducting a comprehensive programme of structural reforms in the social sector, with strategic actions in various areas to promote the population’s well-being and strengthen the country’s institutional capacity. Among the main initiatives is reforming the justice sector, which includes creating an action plan for the Centre for Legal and Judicial Training (CFJJ) and partnerships with law universities in Portugal to train magistrates and public defenders. The sending of Timorese scholarship holders to Portugal is part of this initiative, and between 250 and 300 lawyers are expected to be trained by 2028, contributing to the consolidation of a robust and efficient judicial system in Timor-Leste. 
As part of its decentralisation and regional development policies, the Government made progress with the decentralisation process to strengthen local autonomy and promote economic development outside the capital, ensuring a more equitable distribution of resources and opportunities. Initiatives have also been implemented, such as the launch of the One-Stop-Shop, to simplify administrative processes for citizens and companies to promote a more efficient and accessible business environment, especially for small and medium-sized enterprises. Progress was also made in restructuring the Special Administrative Region of Oe-Cússe Ambeno (RAEOA) and the Special Zones of Social Market Economy of Timor-Leste (ZEESM-TL – acronym in Portuguese). These reforms include the amendment of existing legislation and the appointment of Rogério Tiago de Fátima Lobato as President of the RAEOA Authority, with a new Executive Committee dedicated to implementing a Special Economic Zone in Oe-Cússe Ambeno.
In education, the Government has implemented a series of measures to guarantee efficient management of human resources, ensuring the quality and continuity of teaching throughout the country. Pools for candidates have been created as part of recruitment competitions, allowing the Ministry of Education to allocate resources quickly according to the needs of schools. With the approval of the Higher Education Framework Law, the Government strengthened the sector by introducing Higher Technical-Vocational Courses (CTePS – acronym in Portuguese), standardising bachelor’s and master’s degree cycles and authorising distance learning, adapting to modern teaching needs. 
The Government has also initiated programmes to combat malnutrition, including developing the National Multisectoral Plan to Combat Stunting and purchasing Specialised Nutritious Foods. Large-scale vaccination campaigns have also been implemented, including HPV vaccination to prevent cervical cancer and the confirmation of rubella eradication in the country, which was validated by the World Health Organisation (WHO).
In health, the Government has been working to expand hospital infrastructure and improve maternal and neonatal healthcare. Projects to build new hospitals in Manufahi, Ermera, and Dili are underway, as are initiatives to ensure a continuous supply of medicines. In response to the threat of rabies, the Government quickly implemented control and prevention measures that contained the situation, preventing the virus from spreading in the country.
In the social protection sector, the amounts of invalidity and elderly pensions under the non-contributory system were increased, and the Bolsa da Mãe (Mother’s Allowance) Programme was adjusted to meet the needs of families better. In collaboration with Portugal, a social security agreement was signed that provides protection and benefits for Timorese citizens living abroad. The Government has also strengthened support for children’s rights, implemented measures to improve the living conditions of people with disabilities, and new strategies for caring for the elderly. 
These actions demonstrate the Government’s commitment to creating a more robust social protection network, improving health and education indicators, and fostering inclusive economic growth. By implementing these policies, Timor-Leste is strengthening the foundations for sustainable development, providing better living conditions for its population, and building a more resilient and prosperous future.
GOOD GOVERNANCE, FIGHTING CORRUPTION
The 9th Constitutional Government has implemented a series of structural reforms to promote transparent, efficient, and accountable public management following the principles of good governance. Among the main initiatives is the Public Finance Management Reform, which includes approving the new Public Financial Management Law. This law aims to improve budget planning and strengthen transparency, with greater parliamentary control over public spending and guaranteeing that spending is geared towards concrete results that benefit the population.
To complement this reform, three essential draft Decree Laws were approved: the new Procurement and Public Contracts Code, which strengthens transparency and introduces anti-abuse rules; the Regulation for the Granting of Subsidies, Grants and Donations, which ensures a strict framework for allocating public support; and the Internal Audit Regulation, which establishes guidelines for independent and impartial audits in public entities, promoting the continuous improvement of administrative operations.
In the security sector, the Government introduced comprehensive reforms in its first year in office, including the reintegration of members of the National Police of Timor-Leste (PNTL) and a restructuring of the security forces, with ongoing evaluations and adjustments to ensure effectiveness and readiness. These reforms aim to strengthen the discipline and neutrality of the security forces, essential pillars for the stability and credibility of national institutions. Among the measures adopted are the reinstatement of 158 PNTL police officers who had been irregularly retired, the approval of a new Police Statute and a new Organic Law for the PNTL. These laws introduce significant changes, including reintroducing the oath of allegiance and defining objective criteria for promotions, strengthening the institution’s response capacity.
In response to public order concerns, the Government suspended martial arts teaching, learning, and practice and temporarily closed all martial arts venues. This measure was implemented to promote social peace and has effectively reduced conflicts related to martial arts activities. Thoughtfully, the Government plans to allow martial arts to be practised only in a sporting context in the future, encouraging healthy exercise and contributing to young people’s civic and humanistic education. 
An “Institutional Commitment of Honour” ceremony was held to reinforce integrity and impartiality in the defence and security forces. In it, members pledged to disassociate themselves from political organisations and martial arts groups. This initiative enhances the discipline and neutrality essential for the credibility of the defence and security institutions, strengthening the population’s confidence and promoting stability in Timor-Leste.
In response to the need to strengthen local governance and decentralisation, the Government created the Suco (Village) Administration Service, which facilitates direct support for communities and ensures allowances for community leaders. In parallel, programmes such as the Administrative Post Workforce and the Hafoun (Renew) Hamlets Movement are being restructured to improve the quality of life in the Hamlets. The Strategic Plan for Municipalities was also launched, accompanied by implementing the One-Stop-Shop in municipal centres, simplifying access to public services and promoting administrative efficiency.
To combat corruption, the new Procurement and Public Contracts Code introduces whistleblower protection and strengthens the responsibility of public entities in contract management. In the customs system, the new Commissioner of the Customs Authority, Joanico Pinto, is committed to strengthening border control, maximising revenue collection and promoting a culture of efficiency and integrity. 
With these initiatives, the Government of Timor-Leste reaffirms its commitment to good governance, transparency, the fight against corruption, and internal security. These actions guarantee a stable and reliable environment for the country’s development and consolidate the population’s trust in public institutions, creating a solid foundation for sustainable development, social peace, and prosperity in Timor-Leste.
INTERNATIONAL RELATIONS
The year 2024 was marked by the historic visit of His Holiness Pope Francis to
Timor-Leste, an event widely recognised as a great success. The Holy Father expressed his gratitude to the Prime Minister, Kay Rala Xanana Gusmão, for his hospitality and success of his Apostolic Journey, which reinforced Timor-Leste’s role as a country of dialogue and welcome in the international community.
Since the beginning of the current mandate, Timor-Leste has received several visits from Heads of State and Government, members of foreign Governments, and leaders of renowned international organisations. One of these visits was to the Secretary-General of the United Nations, António Guterres, which underlines the country’s importance in the global context and its growing relevance in international issues. 
At the same time, the country has actively participated in regional meetings and forums, especially within ASEAN, demonstrating its commitment to regional integration and strengthening diplomatic ties with neighbouring countries. Active presence at such meetings allows Timor-Leste to position itself as an important partner in Southeast Asia and strengthen its regional political and economic relations.
These initiatives in international relations stand out not only because of the relevance of the meetings and visits but also because of the benefits they bring to Timor-Leste. Strengthening diplomatic ties and expanding cooperation with friendly countries and international organisations allows the country to consolidate its global presence, attract investment, foster economic development, and promote regional peace and stability. Through these efforts, Timor-Leste demonstrates its commitment to inclusive development and determination to contribute to the international community while reaping the rewards of mutual respect and collaboration. 
The Government Spokesperson, Minister Agio Pereira, said that “the 9th Constitutional Government, under the leadership of Prime Minister Kay Rala Xanana Gusmão, is firmly committed to ensuring that every Timorese benefits from responsible management of public resources and policies that sustain long-term development”. He added that “the 2025 GSB reflects a vision of sustainable growth, where every investment is aimed not only at immediate well-being but also at creating solid foundations for future generations. We are building a more prosperous, equitable and resilient Timor-Leste”. 