Dili, Nov. 5, 2025 (Lusa) - Prime Minister Xanana Gusmão said on Wednesday that 2026 will be the year to transform Timor-Leste's economy by creating jobs for young people, prudent fiscal management, and the building of capable institutions.
"If 2024 was a year of correcting the weaknesses found in the institutions, systems and processes of the public sector and 2025 a year of defining policies and strategies and implementing reforms and audits, 2026 will be the year of transforming the economy," said Xanana Gusmão.
The Timorese leader was speaking in the Timorese National Parliament at the start of the general debate on the General State Budget for 2026, which will run until 24 November, when the final overall vote on the document is due.
The State Budget for 2026 is worth $2.29 billion (€1.99 billion) and, according to Xanana Gusmão, there is a guiding principle behind the spending of each dollar: whether it will help a Timorese family live better.
"It is a national imperative to give our young people hope in their own country, without them having to look for a future abroad," said the Prime Minister, emphasising that the State Budget will support productive sectors that can grow quickly and hire on a large scale.
The 2026 State Budget foresees an investment of €194.1 million in the Roads and Bridges programme, €22.4 million in water and sanitation programmes, €120.5 million in the electricity sector programme, €40.3 million in the airport area, €37.7 million in agriculture, and €32.3 million in decentralisation.
Regarding the creation of stability through prudent fiscal management, the Timorese leader pointed out that the Petroleum Fund, which finances most of the State Budget, could be exhausted in the next decade and that it is therefore necessary to "expand internal revenues" without crushing taxpayers.
"We have to grow our private sector and broaden our tax base so that, in the future, a greater part of our budget will be financed by prosperous Timorese companies and workers rather than by oil money," Xanana Gusmão emphasised.
To this end, the 2026 budget plans to capitalise on the country's oil and mineral wealth, with an investment of €168.9 million in crucial projects, according to the Prime Minister: the Tasi Mane project, Greater Sunrise, and the Bayu-Udan transition.
The 2026 State Budget also provides for expenditure of €158.1 million in the education sector, €120.3 million in health, €47 million in the social protection and inclusion sector, €11.1 million for vocational training and €27.9 million to support the private sector, especially small and medium-sized enterprises and co-operatives.
"We are investing in a healthier, more capable and fairer society, which are fundamental conditions for the social and economic foundation of a developing country," said Xanana Gusmão.
To build capable institutions, the Prime Minister highlighted an investment of €5.4 million in human resource management to foster a professional and responsible public administration.
"I can only say that the government will continue to implement structural reforms in the management of public finances, with a view to modernising and making transparent the state's financial administration," said Xanana Gusmão.
In his speech, he said that "social cohesion is not just a promise", but the basis of everything the government is trying to build.
"In a government under my responsibility, I cannot fail to defend social inclusion and income redistribution in a country that would be nothing today without the sacrifices of the entire population," he added.
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