Dili, Oct. 1, 2025 (Lusa) - On Wednesday, the Timorese government submitted to parliament the proposal for the General State Budget for 2026, totalling $2.29 billion (€1.95 billion).
"We have delivered the 2026 State Budget proposal to the president of parliament. It will then be distributed to the committees, which will analyse it and, if they find any problems, return it to the government. We will then review the proposal again and then set the date for the general discussion, specialised discussion and final overall vote," said Xanana Gusmão.
The prime minister was speaking to journalists after handing over the 2026 State Budget, accompanied by the finance minister, Santina Cardoso, and the deputy minister for parliamentary affairs, Adérito Hugo.
Xanana Gusmão emphasised that the decision to reduce, increase or approve the proposal is entirely up to parliament.
Asked when the proposal would be discussed, Xanana Gusmão said that it was parliament that would set the timetable for the government.
In a statement, the government said that the State Budget provides for $2.21 billion (€1.89 billion) for the Central Administration and $60 million (around €51 million) for the Special Administrative Region of Oecussi Ambeno, of which $30 million (€25.5 million) is own revenue.
'Social Security has a budget of $170 million [€144.7 million], of which $46 million [€39.1 million] comes from its own revenues,' the statement said.
For the government, the proposal continues the executive's strategy, as well as the Strategic Development Plan, by channelling ‘resources to strengthen social capital, invest in infrastructure, diversify the economy and strengthen good governance’.
The 2026 State Budget allocates $74.2 million (€63.17 million) for health sector spending, comprising $55.9 million (€47.59 million) for primary health care and $4.5 million (€3.83 million) for hospital rehabilitation and construction.
Spending of $35.8 million (€30.48 million) includes strengthening the School Meals Programme, building and rehabilitating classrooms, curriculum reform, and teacher training, compared to the $145.8 million (around €124.1 million) allocated in 2025.
For infrastructure, it provides $436 million (around €371 million) for development capital, of which $300 million (€255.3 million) is allocated to the infrastructure fund, $107 million (around €91 million) to ministerial lines and $29 million (€24.6 million) to municipalities.
That sector also includes $223.4 million (around €190 million) for energy (expansion and modernisation of the electricity grid, studies for oil infrastructure, and development of the Tasi Mane project) and $20.2 million (around €17.2 million) for agriculture.
For the economic sector, it is planned to allocate $32.1 million (€27.3 million) to support micro, small and medium-sized enterprises and cooperatives and promote exports and product quality, and $4.3 million (€3.6 million) to support measures in the area of trade and industry.
It also plans to spend $104.7 million (€89.13 million) on the oil sector, including the exploration of new oil and mineral blocks, and $5.2 million (€4.4 million) on the creation of tourist centres.
In the institutional sector, the government has earmarked a sum of $12.7 million (around €10.8 million) to strengthen diplomacy and ensure compliance with the requirements for membership of the Association of Southeast Asian Nations (ASEAN).
The state budget proposal also includes spending of $16.2 million (€13.7 million) for the justice sector, $37.1 million (€31.5 million) to support the decentralization and modernization of public financial management, and $6.2 million (€5.2 million) for civil service reform.
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