Government of Timor-Leste

On November 25^th, the President of the Republic, José Ramos-Horta, enacted Law no. 8/2024, of November 26^th, 2024, on the 2025 General State Budget (GSB), which has now been published in the Official Gazette. This budget, worth a total of US$2.617 billion, represents the 9th Constitutional Government's commitment to prioritising investment in strategic infrastructure, promoting economic growth and improving the well-being of citizens.

Prime Minister Kay Rala Xanana Gusmão stressed during his speech to the National Parliament that this budget is “more than a mere collection of figures and allocation of funds: it is a declaration of intent, a bold vision for the future, and a concrete roadmap for meeting challenges and taking advantage of opportunities.” The Head of Government also stressed that the 2025 GSB was designed to benefit all citizens, regardless of their location or social status, reaffirming that “this is a budget for the people and by the people.” 

The 2025 GSB reflects the 9th Constitutional Government's strategic vision of building a more prosperous and just society. “We are investing in our future, ensuring that Timor-Leste emerges from the challenges as a stronger, more united and more prosperous country”, declared the Prime Minister.

This budget, totalling US$2.6 billion, is earmarked for the Central Administration, the Special Administrative Region of Oe-Cússe Ambeno (RAEOA), and Social Security, including the Social Security Reserve Fund. This figure includes an allocation of US$2.07 billion for the Central Administration, US$482 million for Social Security, and US$62 million for the RAEOA.

The 2025 GSB continues the strategy of implementing the priorities set out in the Government's Programme under the slogan ‘Investment in strategic infrastructure, strengthening the economy and improving citizens’ well-being’. The budget was formulated in line with the Strategic Objectives of the 9th Constitutional Government to promote the socio-economic development of the nation through targeted investment in strategic infrastructure, economic strengthening, and initiatives to improve the well-being of citizens. The 2025 GSB aims to promote economic development and improve the living conditions of the Timorese through a clear strategy focused on sustainable economic growth, improving public services, and ensuring that the benefits of development reach all citizens.

Regarding strategic infrastructure, US$227.3 million is allocated for the construction, expansion, rehabilitation and maintenance of road networks and bridges and for implementing natural disaster protection measures to improve connectivity and protect communities from the effects of climate change. Appropriations are also earmarked for the rehabilitation of the Presidente Nicolau Lobato International Airport and the completion of the submarine fibre optic cable that will connect Timor-Leste to Australia. The expansion of the internal fibre-optic network will enable the supply of high-speed internet throughout the country starting in 2025. In electricity, the budget significantly increases subsidies to the public company EDTL, E.P., to improve and expand the continuous electricity supply, especially in rural and remote areas, ensuring a more stable and comprehensive service. 

 In natural resources, the proposal earmarks US$40 million to improve industrial and oil and mineral extraction zones on the country's southern coast, contributing to economic development and strengthening energy security.

In finance, US$5 million is planned for the capitalisation of the Central Bank of Timor-Leste, which will strengthen the stability and resilience of the national financial system.

The 2025 GSB allocates a significant part of expenditure, around US$406 million, to support civil society, health and social services. In human capital development, US$17.2 million is allocated to vocational and technical training programmes and scholarships. Education will also get US$145.8 million to build new schools, train teachers and strengthen the education management system.

 In health, the budget allocates US$99.2 million to improve the hospital network and health centres across the country and US$14.2 million for acquiring and distributing essential medicines and medical equipment. Regarding social protection, the Bolsa da Mãe (Mother's Allowance) programme will be strengthened with an increase of more than US$7 million, plus US$2.86 million, to improve pregnant women's and children's health and nutrition. The proposal also includes a transfer of US$124.1 million to the Social Security Budget, an increase of US$37.4 compared to 2024, which reflects the expansion of the Social Security system and the value of the social pension for old age and disability.