The National Parliament approves the 2026 GSB Supplementary Budget, aimed at strengthening energy security and mitigating the impact of rising fuel prices on households and businesses
Today, June 2nd, 2026, the National Parliament approved, in a final overall vote, the proposal for the first amendment to Law No. 8/2025 of November 27th, regarding the General State Budget for 2026 (2026 supplementary GSB). The proposal was approved with 42 votes in favour, zero against, and 23 abstentions.
The amendment to the 2026 GSB aims to address the effects of the current international situation, marked by geopolitical instability and fluctuations in international energy markets, by measures to strengthen national energy security, stabilise fuel prices, and ensure the continued operation of essential services.
Among the key measures planned is the establishment of a National Strategic Fuel Reserve worth US$174.3 million, intended to cover approximately seven months of the country’s electricity generation fuel needs. A fuel subsidy programme worth US$42 million is also planned, with the aim of mitigating the impact of rising international prices on households and businesses.
The proposal also provides for the strengthening of the National Logistics Centre’s rice stockpile, additional funds for the recruitment of 400 cadets for the National Police of Timor-Leste (PNTL), expenses related to the exercise of the Pro Tempore Presidency of the Community of Portuguese-Speaking Countries (CPLP), the strengthening of the operational capacity of notary services, and an increase in 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 budget increase 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.
The parliamentary review process for the proposal began after its formal submission to the National Parliament on May 15th, following its approval by the Council of Ministers on May 13th. After public hearings organised by the Specialist Standing Committees and the Prime Minister’s presentation of the proposal in plenary, the amendment to the 2026 General State Budget was approved in general terms on May 28th, before proceeding to detailed discussion and voting, which culminated today in the final overall vote.
Once the parliamentary process is complete, the final draft of the law will be submitted to the President of the Republic for promulgation, in accordance with the Constitution of the Democratic Republic of Timor-Leste.
