Debate of the Draft Law on the State Budget for financial year 2013 has started this Monday 4 February in the National Parliament.

Following the introduction of the plenary session by the Speaker of the National Parliament, Vicente da Silva Guterres, the Prime Minister of the V Constitutional Government presented the main ideas contained in the State Budget for 2013. Kay Rala Xanana Gusmão started by presenting the long-term perspective that guides the Executive for the development of the young State of Timor-Leste. Such perspective is expressed in the State Budget Draft Law, in the Government Programme, and particularly in the Development Strategic Plan presented in the National some four months ago.

Economic growth, employment promotion, as well as fight against poverty constitute the central concerns of the V Constitutional Government, which is concomitantly conscious of the need to control public expenditure.

“There is a perspective that overall public spending will be reduced in the future. It also means that we must start immediately to limit the growth of current expenditure. This is a challenge for the entire public administration, and here we must bear in mind that our State agencies are also growing. This Government is committed to improving service delivery to the people and to correcting management irregularities, so as to achieve the budget stabilization of current expenses.

Only by thinking of ‘building and consolidating’ can we generate domestic revenue for funding a larger percentage of State expenditure and attract investments in productive sectors in order to benefit the Timorese People.

The 2013 State Budget enables the achievement of this goal in a prudent manner. The 2013 State Budget sets priorities properly. The 2013 State Budget is a balanced budget”, the Prime Minister ensured.

The major projects for Timor-Leste, which initiated during the last mandate and this year, were duly explained and inserted into the government strategy to elevate the economic status of the country, thereby ensuring stability.

“Increasing productivity, skilled labour and business competitiveness is the only way to support strong economic growth in the long term and to reduce and stabilize inflation. The Government will do everything it can to reduce inflation below 8%, in accordance with the priorities set in the 2013 State Budget”, the Prime Minister explained.

Kay Rala Xanana Gusmão then informed the National Parliament of the figures and the priorities of the Government for this year: “in 2013 we will be investing a total of $1,797.52 million to meet the needs of the country, giving priority to Infrastructures, Agriculture, Health and Education. In comparison with the previous year, we have increased the investment in agriculture by 28%, in education by 12% and in health by 15%. The 2013 State Budget is set to invest $892 million in development capital, including $753 million for large multi-year projects in the Infrastructure Fund”, stated the Head of Government, adding that the three biggest programmes of this Fund are electricity, roads and Tasi Mane.

(To read the full speech of the Prime Minister, click here).

Following the presentation of the Draft Law by the Prime Minister, the floor was given to the parliamentary benches, with FRETILIN having 30 minutes and the remaining political parties having 10 minutes each – a new method introduced this year.

It should be recalled that the Draft Law is voted in general after three days of debate, after which the Draft Law is submitted to a special debate with a maximum duration of 10 days.

It should also be noted that the debate is transmitted in its entirety by RTL and TVTL.

(To access the Press Release of the meeting of the Council of Ministers that approved the State Budget Draft Law for 2013 click here).