Extraordinary Meeting of the Council of Ministers on June 30th 2025
Presidency of the Council of Ministers
Spokesperson of the Government of Timor-Leste
Ninth Constitutional Government
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Press Release
Extraordinary Meeting of the Council of Ministers on June 30th 2025
The Council of Ministers met at the Government Palace in Dili and, after analyzing the presentation by Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, decided to approve the Budget Strategy Statement and the indicative expenditure ceiling for the 2026 State Budget (OGE 2026). These instruments, provided for in the Framework Law for the General State Budget and Public Financial Management (Law no. 3/2025, of April 23rd), guide medium-term fiscal policy, ensure coherence between national development objectives and available resources, and establish spending limits for the different sectors of Public Administration.
The Minister of Finance presented an economic growth forecast of 2.7 per cent of GDP for 2026, in a context of budgetary consolidation, after an estimated growth of 4.3 per cent in 2025. The inflation rate continues a downward path, expected to reach 1.8% in 2025 and to stabilize at around 2% over the next five years.
The overall indicative expenditure ceiling for the 2026 State Budget has been set at 1.85 billion US dollars. The distribution of the aggregate ceiling for the Central Administration Budget in the 2026 State Budget is based on the strategic sectors defined by the Government Program and the Strategic Development Plan, with 36% being allocated to the Institutional Framework Sector, 28% to the Social Capital Sector, 28% to Infrastructure Development, 7% to Economic Development and 1% to Good Governance and Combating Corruption.
The timetable for the budget process establishes the distribution of the disaggregated ceiling to the entities on July 4th, the submission of ministerial proposals by July 24th, the meetings of the Budget Review Committee between August 4th and 20th, and the delivery of the GSB 2026 proposal to the National Parliament by October 1st, 2025. END
