On May 26th, 2026, Prime Minister Kay Rala Xanana Gusmão chaired a meeting of the Territorial Coordination Council in Dili, dedicated to assessing the implementation of government programmes in the municipalities, analysing the main challenges on the ground, and setting priorities for territorial development and the 2027 General State Budget. 
The meeting brought together government officials, mayors, directors-general, national directors from relevant ministries, and other guests as part of the coordination between the central government and municipal authorities.
During the opening session, the Prime Minister called on the heads of local authorities to step up preparations for the upcoming local government decentralisation process by identifying community needs and implementing integrated planning at the village, administrative post, and municipal levels.
“We have not done everything yet. We are at a standstill on many issues. The Government needs a vision. To have a vision, we must understand the full reality on the ground and all the people’s needs. There must also be a vision for establishing local government. I entrust this to you because you will become members of the local government and must prepare yourselves well. The municipality is in your hands,” said Kay Rala Xanana Gusmão.
The Head of Government also emphasised the need to improve planning across areas such as infrastructure, roads, water supply, electricity, health, and education.
The Minister of State Administration, Tomás do Rosário Cabral, noted that the Territorial Coordination Council serves as a strategic platform for aligning national objectives with local needs and for preparing municipal plans and budgets.
According to the minister, the Council serves as a decision-making body of the Ministry of State Administration, aligning the Integrated Municipal Plan with the priority investment programmes set out in the Strategic Development Plan and the Integrated Municipal Development Plan before the approval of proposals under the General State Budget.
Tomás do Rosário Cabral explained that the results of the public consultations organised by the Ministry of Finance in the municipalities will be taken into account when preparing municipal budget proposals for fiscal year 2027.
The Minister also emphasised that the Council’s main objectives are to promote territorial cohesion, reduce regional disparities, and ensure that public investments meet the needs identified by local communities.
“Of all these issues, no single ministry or municipality can transform the country on its own. The success of our public policies depends directly on our ability to share responsibilities and sustain dialogue,” he said.
During the meeting, annual action plans, municipal budget proposals, procurement plans, human resources training programmes, and progress reports on municipal services were also presented.
The Minister of State Administration also reported that 21 national-level services have already been delegated to municipal authorities and noted that, in the December 2025 assessment of minimum standards across the 12 municipalities, five received a “very good” rating.
A second evaluation will be conducted in June 2026 to assess the implementation of the recommendations identified by the evaluation team and the Prime Minister during their visits to the municipalities in March this year.