Today, May 28th, 2026, the National Parliament approved, in general terms, the Government’s proposal for the first amendment to Law No. 8/2025 of November 27th, concerning the General State Budget for 2026 (2026 GSB). The proposal was approved with 42 votes in favour, 0 against, and 23 abstentions.
The supplementary budget aims to address the effects of the current international situation, marked by geopolitical instability and fluctuations in global energy markets, by measures to strengthen national energy security, stabilise fuel prices, and ensure the continued operation of essential services.
During the proposal’s presentation to the plenary session, Prime Minister Kay Rala Xanana Gusmão stated that “the budget debate is not merely about numbers, percentages, and financial data,” emphasising that “the ultimate goal is to promote the country’s development and the well-being of its citizens.”
Among the key measures outlined in the proposed amendment to the 2026 GSB is the establishment of a national strategic fuel reserve valued at US$174.3 million, intended to cover approximately 7 months of the country’s electricity-generation fuel needs. A fuel subsidy programme worth US$42 million is also planned to mitigate the impact of rising international prices on households and businesses.
The proposal also includes measures related to food security, including replenishing the National Logistics Centre’s rice stockpile, increasing funding for the recruitment of PNTL cadets, covering expenses associated with the CPLP’s Pro Tempore Presidency, and replenishing the State Contingency Reserve.
Under this amendment, the consolidated amount of the 2026 GSB increases by US$101.1 million, rising from US$2.291 billion to US$2.392 billion. The increase in the budget amount does not result from increased transfers from the Petroleum Fund, but rather from the realignment of the government’s financing sources, including management balances, available balances in non-operating bank accounts, and increased domestic revenues.
During the parliamentary debate, the Prime Minister reiterated that “the goals of investing in national transformation, regional integration, and inclusive development remain firm,” and added that the Government will continue to invest in infrastructure, public services, agriculture, tourism, support for the private sector, and opportunities for young people.
Kay Rala Xanana Gusmão also emphasised Timor-Leste’s commitment to regional integration and participation in international organisations, stating that “integration into ASEAN, accession to the WTO, cooperation with the CPLP, and partnerships with our neighbours and development partners are not merely symbolic.”
Following its approval in general terms, the proposal will now be debated in detail between May 29th and June 2nd, culminating in a final overall vote on the first amendment to Law No. 8/2025 of November 27th.