Meeting of the Council of Ministers on May 13th, 2026
Presidency of the Council of Ministers
Spokesperson of the Government of Timor-Leste
Ninth Constitutional Government
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Press Release
Meeting of the Council of Ministers on May 13th, 2026
The Council of Ministers met at the Government Palace in Dili and approved the draft Law Proposal presented by Finance Minister Santina José Rodrigues F. Viegas Cardoso for the first amendment to Law No. 8/2025 of November 27th, regarding the General State Budget for 2026 (2026 GSB).
The proposal calls for an adjustment to the 2026 GSB to address the rise in international fuel prices linked to the conflict in the Middle East, the costs associated with Timor-Leste’s assumption of the Pro Tempore Presidency of the Community of Portuguese-Speaking Countries (CPLP – acronym in Portuguese) following the approval of the 2026 GSB, and expenses related to the Oe-Cússe Special Administrative Region.
Under this amendment, the consolidated amount of the 2026 GSB increases by approximately US$101.1 million, reaching approximately US$2.39 billion. This increase does not result from any increase in transfers from the Petroleum Fund, but rather from the realignment of the government’s financing sources, using management balances, available balances in non-operating bank accounts, and increased domestic revenues.
The proposed amending budget also aims to mitigate the economic impact of rising international fuel prices, given the country’s heavy reliance on imports—particularly fuel and food—which directly affects transport costs and domestic inflation.
According to projections by the Ministry of Finance, average annual inflation in 2026 is expected to rise to 2.2%, up from 1.2% in 2025, despite international fuel price increases, without a significant worsening, due to the measures adopted by the Government to stabilise fuel prices.
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Following proposals presented by the Minister of Foreign Affairs and Cooperation, Bendito dos Santos Freitas, the Council of Ministers authorised the conclusion of financing agreements between the Democratic Republic of Timor-Leste and the European Union for the initiatives “Creation and Development of Sustainable Businesses and the Circular Economy (CRESCE)” and “E-Governance for the Judicial System in Timor-Leste (e-JUS TL)”.
The CRESCE programme, funded with three million euros (approximately US$3.5 million), aims to support the creation and development of sustainable businesses and circular-economy initiatives in Timor-Leste, promoting economic diversification, job creation, and environmentally sustainable production and consumption models. The Council of Ministers has designated the Vice Prime Minister and Coordinating Minister of Economic Affairs to sign the agreement on the Government's behalf.
The e-JUS TL initiative, funded with six million euros (approximately US$7 million), aims to strengthen e-governance within the national judicial system to improve access to justice, increase the efficiency and accessibility of judicial services, and bolster public confidence in judicial institutions through digital transformation and e-governance tools. Under this agreement, the Minister of Justice was designated as the Government’s representative for signing the financing instrument.
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Lastly, the Council of Ministers approved the draft Government Resolution on measures to strengthen public safety and prevent violence. This decision follows recent weeks’ incidents of violence across the country, involving groups of young people and causing serious consequences for citizens' physical safety, private property, and the stability of affected communities. These incidents took on particular gravity on May 10th in Mehara, Tutuala Administrative Post, Lautém Municipality, where a confrontation involving a group of young people may have resulted in the death of a citizen.
The Government unequivocally and vehemently condemns all acts of violence and property destruction that have resulted in the loss of human life, physical harm to citizens, or damage to private property, regardless of who committed them or their motives.
Among the measures approved, the Government reiterates the temporary suspension, throughout the country, of group activities involving the teaching, learning, and practice of martial and ritual arts, as well as the closure of venues used for such activities. This measure is exceptional, proportionate, and preventive, aimed at preventing the exploitation of these activities as a context for organising violent acts.
The Government Resolution also calls for the Timor-Leste National Police to step up patrols throughout the country, particularly in areas and at times when there are large gatherings of young people or a history of violence. It also calls for the cooperation of community leaders, specifically Village Chiefs and Hamlet Chiefs, in reporting situations covered by the suspension of activities related to martial arts and ritual arts. Municipal authorities, the Special Administrative Region of Oe-Cússe Ambeno, and the Administrative Authority of Ataúro must ensure the immediate communication of this information to the competent police authorities. The Resolution further mandates that police authorities continue and expedite ongoing investigations into incidents of violence that have already occurred, and that the perpetrators be held accountable in accordance with the law. END
