Today, November 5th, 2025, the Ninth Constitutional Government presented the 2026 Draft General State Budget (GSB) to the National Parliament, under the theme “Investing in National Transformation, Regional Integration and Inclusive Development”. The document, which provides for a total consolidated budget of US$2.291 billion, reflects the Government’s vision of promoting sustainable economic growth, strengthening strategic infrastructure, and ensuring better living conditions for all citizens. 
In his speech, Prime Minister Kay Rala Xanana Gusmão stated that “This is, without doubt, one of the defining moments in the life of a State”, emphasising that the debate on the 2026 GSB “is, above all, a democratic exercise of debate of the political and strategic choices for the nation.”
“We are here to give meaning to these numbers, to give faces to these investments — investments that aim to improve the lives of our people, to empower them, and to promote their development in a healthy, educated and entrepreneurial society”, he added.
The Head of Government emphasised that the 2026 General State Budget “is more than a financial plan” – “It is our pact with the Timorese people, and our commitment to the region we are joining — as equals!”. He also stressed that, after “correcting the weaknesses found in our institutions, systems and public-sector processes” and “defining policies and strategies and implementing reforms and audits” in 2024 and 2025, next year “will be the year to transform the economy”, boosting employment, productive investment, and social inclusion.
Xanana Gusmão emphasised that the budget is based on ‘four key objectives’ – job creation, fiscal stability, and prudent resource management, building capable institutions and ensuring dignity for all people. He noted that non-oil GDP growth, after growing by 4.3% in 2024, is expected to reach 4.5% in 2025 and 2026, “the highest economic growth in Timor-Leste in the last decade”, reflecting increased public investment and economic confidence.
In the economic sphere, the Prime Minister emphasised that this budget aims to boost productive transformation and create jobs for Timorese. “It is a national imperative to give our youth hope within their own nation, so that they do not need to seek their future abroad”, he said.
“We are not merely building roads; we are building pathways to employment. We are not only supporting agriculture; we are supporting the farmer’s son who wants to add value to his father’s harvest and sell it across Southeast Asia,” he emphasised.
On regional integration and Timor-Leste’s international role, Xanana Gusmão recalled that “Joining the WTO and ASEAN opens doors to new markets and opportunities”, and stressed that the country “stands as an example of peace, reconciliation and tolerance — both religious and political — and can contribute to building a better world”.
The Prime Minister reaffirmed that “the Ninth Constitutional Government has placed the ocean at the centre of its action”, announcing the implementation of the Blue Economy Policy 2025–2035, “to be approved by the end of this year”, which seeks to harness the economic potential of marine resources for national sustainable development, while simultaneously ensuring the protection and conservation of the sea and its ecosystems”.
The Head of Government recalled that the budget “is guided by one underlying principle in the planning of every dollar: – Will this help a Timorese family live better tomorrow than it does today?”, stressing that “Growth means nothing if it does not reach the grandmother in the mountains who still walks hours to access basic health care”. “Social cohesion is not merely a promise — it is the foundation of everything we are trying to build”, he said.
In closing, the Prime Minister called for national unity and cooperation among the organs of sovereignty, addressing a message to young people and public servants: “To our young people: take advantage of every training and employment opportunity available. By investing in yourselves, you are investing in your country. To our dedicated public servants: You are the bridge between the Government’s promises and citizens’ realities.”
He concluded on a confident note: “Let us move forward together — with discipline in our finances, ambition in our reforms, and unity in our national purpose — for together we are stronger than any challenge we face”.
The discussion in general terms of the 2026 GSB proposal will take place between November 5th and 7th, followed by a detailed analysis starting on the 13th, for a maximum period of ten days, culminating in the final overall vote and submission for promulgation by the President of the Republic.
To access the 2026 Draft General State Budget Law and other related documents, click here!
