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2017 General State Budget
Orsamentu Jerál Estadu 2017

8 June 2017

Link to page on 2016 state budget.      Liga ba pájina kona-ba OJE 2016

Contents of this page

Konteúdu pájina ida ne’e

2017 Budget Process

As in the last several years, the Ministry of Finance held a jornadas orçamentais workshop (formerly called "Yellow Road") on 16 May 2016. The discussion covered program and budgeting for 2017, including national priorities and the fiscal envelope. La'o Hamutuk and other civil society groups were not invited, although some journalists did attend. LUSA wrote three articles about the workshop (Tetum), reporting that the proposed fiscal envelope for 2017 will be $1.2 billion. Unlike in past years, none of the materials have been posted on government websites, but La'o Hamutuk has obtained and scanned most of the Ministry of Finance presentations (Tetum).

On 24 May, the Ministry of Finance presented five scenarios to the Council of Ministers for the fiscal envelope for 2017. Although the Government press release doesn't report the size of the budget to be proposed, local media reported the Secretary of State for the Council of Ministers as saying it will be $1.0 billion, or perhaps $1.2 or $1.3. On 7 June the Council of Ministers continued the discussion.

In June and July, Government and Parliament revised the current year (2016) budget, adding $391 million to pay for Tibar Port, the Suai Supply Base and other infrastructure megaprojects. Although the money added to the 2016 budget includes some of what had originally been planned to be spent in 2017, it is unclear whether the fiscal envelope for 2017 was reduced in response.

On 13 September, the Budget Review Committee concluded its consultation with various ministries, and the proposed 2017 budget law was approved by the Council of Ministers on 5 October.

The Prime Minister's office made a presentation (Tetum) on the budget cycle to the NGO Forum on 13 October. Although it's not clear from the slides, everything on the first 14 slides is done behind closed doors, with no transparency or public participation. Mid-October, when the Budget proposal has already been approved by the Council of Ministers and is presented to Parliament, is the first time its specifics are made known to citizens or civil society.

Prosesu Orsamentál ba 2017

Hanesan iha tinan hirak kotuk, Ministériu Finansas organiza seminar jornadas orsamentál (antes ne’e bolu "Yellow Road") ida iha loron 16 Maiu 2016. Diskusaun ne’e kobre programa no nian ba Orsamentu Jerál Estadu (OJE) 2017, inklui diskute prioridade nasional no mos envelop fiskál. La’o Hamutuk no ONG sira seluk la hetan konvite, maske jornalista balun bele atende seminar ne’e. LUSA hakerek artigu tolu kona ba Jornadas, no dehan katak proposta envelop fiskál ba tinan 2017 sei sai biliaun $1.2. La hanesan iha tinan kotuk, ba tinan ida ne'e, Governu la publika matéria husi Jornadas, maibé La'o Hamutuk hetan no scan parte aprezentasaun husi Ministériu Finansas.

Iha loron 24 Maiu, Ministériu Finansas aprezenta senáriu lima ba Konsellu Ministru ba envelop fiskál iha 2017. Maske  Komunikadu imprensa husi Governu la fó informasaun kona-ba montante tomak iha proposta OJE, maibe media lokal fo sai katak Sekretáriu Estadu ba Konsellu Ministru hatete bele Biliaun ida, ka dalaruma biliaun $1.2 ka $1.3. Iha loron 7 Juñu, Konsellu Ministru kontinua atu diskute asuntu ida ne'e.

Durante fulan Juñu no Jullu, Governu no Parlamentu halo retifikasaun ba OJE 2016, atu aumenta ho tokon $391 ba Portu Tibar, Suai Supply Base, no mega-projetu infrastrutura boot sira seluk. Maske osan adisionál ba orsamentu 2016 inklui ona buat balu sira ne'ebe orijinalmente planea tiha ona atu gasta iha 2017, ita seidauk klaru karik envelope fiskál hatún ka lae.

Iha loron 13 fulan Setembru, Komisaun Revizaun Orsamentál konklui ona ninia konsulta sira ho Ministeriu sira, no proposta Lei Orsamentu Jeral Estadu ba tinan 2017 hetan aprovasaun husi Konsellu Ministru iha loron 5 Outubru.

Gabinete Primeiru Ministru hatudu aprezentasaun kona ba Siklus Orsamentu do Estadu ba Forum ONG iha loron 13 Outubru. Maske apresentasaun iha slide sira ne’e la klaru, maibe buat hotu iha slide 1-14 ne'e halo ho segredu, laiha transparénsia ka partisipasaun husi públiku. Iha fulan Outubru nia klaran, bainhira OJE hetan aprovasaun ona husi Konsellu Ministru no haruka ba Parlamentu, nudar tempu ba dahuluk ba sidadaun sira ka sosiedade sivíl atu bele hatene konteúdu orsamentu ida ne'e.

Government budget proposal to Parliament

The Ministry of Finance submitted the proposed 2017 budget law to Parliament on 13 October, asking for total appropriations of $1,386,826,000, 11% lower than the original (pre-rectification) 2016 budget. Actual spending (execution) is always less than the appropriated amount, and the proposed 2017 budget is more than Timor-Leste has ever spent in a single year (total 2016 spending is not yet known). LUSA reported a few more details (original Portuguese).

La'o Hamutuk scanned the proposed budget law, as well as the Prime Minister's explanation of why he wants to withdraw $597 million more than the Estimated Sustainable Income of $482 million from the Petroleum Fund (both in Portuguese).

The Parliamentary secretariat distributed budget materials to Members on 18 October, along with this explanation (Portuguese).

As has been the case in every budget since the one proposed for 2014, the proposed 2017 budget expects less money from future oil revenues than was previously anticipated. The 2016 budget expected to receive $1,720 million from Bayu-Undan and Kitan between 2016 and 2022, but the proposed 2017 budget only anticipates half that amount ($867 million) during the same period, mostly in 2016 and 2017.

Petroleum Fund withdrawals are slightly reduced in 2017 from the all-time high in the 2016 rectification budget, although they are still more than double the Estimated Sustainable Income. However, budget plans for 2018-2021 return to high withdrawal levels, and the Fund's balance at the beginning of 2021 will be $4 billion less than its $17 billion peak in mid-2015.

Education spending continues to decline, as it has since 2014. Agriculture is also down slightly, although health receives a little more money than last year. Some planned infrastructure spending had been shifted from 2017 to the 2016 rectification budget, so the annual rate of infrastructure spending in 2016-2017 is higher than it has been since 2013, even though 2017 by itself is lower.

 

Governu nia proposta orsamental ba Parlamentu Nasional

Ministeriu Finansa haruka proposta lei Orsamentu Jerál Estadu ba 2017  ba Parlamentu Nasional iha loron 13 Outubru, ho montante total $1,386,826,000. Despeza ida ne'e 11% menus kompara ho OJE 2016 orijinál. Ezekusaun atual sempre menus liu montante alokasaun nian, no proposta OJE 2017 boot liu kompara ho gastu loos kada tinan to agora (maske ita seidauk hatene kona ba 2016). Artigu husi LUSA fó sai informasaun detaillu balu, maske La'o Hamutuk seidauk hetan husi fonte ofisiál.

La'o Hamutuk halo scan ba proposta Lei Orsamentál, no mós informasaun husi Primeiru Ministru ne’ebé esplika tanba sá nia hakarak hasai tokon $597 liu Rendimentu Sustentável tokon $482 husi Fundu Petrolíferu.

Sekretáriadu Parlamentu Nasional fahe dokumentu sira kona-ba proposta OJE 2017 ba Deputadu/a sira, hamutuk ho esplikasaun ida ne'e.

Nudár sai tiha kazu iha kada orsamentu dezde proposta primeiru iha 2014, proposta orsamentu 2017 tau hatudu hela katak future reseita petróleu sei menus kompara ho previzaun sira antes. Orsamentu 2016 ekspeta at hetan biliaun $1.72 hosi Bayu-Undan no Kitan durante 2016 no 2022, maibé proposta orsamentu 2017 antisipa de’it metade hosi montante ne’e (tokon $867) durante tempu ne’ebé hanesan, no barak liu durante 2016 no 2017.

Fundu Petróleu sei halo levantamentu ne’ebé tun uitoan iha 2017 kompara ho orsamentu retifikativu 2016 ne’ebé nudár tinan ba levantamentu as liu, maske, levantamentu iha tinan ne’e nafatin liu Rendimentu Sustentável Estimativa. Nune’e, planu ba 2018-2021 sei fila ba nivel levantamentu as, no Fundu Petrolíferu nia saldu iha inísiu 2021 sei hamenus biliaun $4 hosi nia másimu saldu biliaun $17 iha médiu 2015.

Despeza edukasaun kontinua tun, hanesan akontese dezde 2014. Agrikultura mós tun, maske saúde hetan osan uitoan tan kompara ho tinan kotuk. Planu despeza ba infrastrutura balu muda hosi 2017 ba retifikativu 2016, nune’e nivel despeza annual ba infrastrutura iha 2016-2017 mak ida ne’ebé as liu dezde 2013, mezmu ida be 2017 ne’e mak ida ne’ebé ki’ik liu.

 

Parliamentary consideration

Parliament circulated a calendar (Portuguese) for their consideration of the budget. Committee hearings begin on 26 October and run through 8 November. Parliament will hold a seminar on 9-10 November, and all Committee reports will be finalized by 21 November. General debate will take place on 22-24 November, with debate on specifics from 25 November until global approval on 9 December.

On 27 October, the Petroleum Fund Consultative Council hosted an all-day conference on the Petroleum Fund. La'o Hamutuk has posted presentations by TimorGAP, the Ministry of Finance, the Central Bank and the National Petroleum and Minerals Authority (ANPM). Although the financial people are coming to grips with the imminent end of oil revenues, presenters from the petroleum sector continue to dream of "up to 6 billion barrels" of unexploited oil and gas reserves, which could provide $40 billion more in upstream petroleum revenues to Timor-Leste over the next 25 years. However, as La'o Hamutuk has shown, these are in areas which have already been explored by oil companies and given up as unviable projects (except for Greater Sunrise which is pending resolution of the dispute with Australia), and the remainder could be worth nothing at all.

On 28 October, Parliament Committees C and D held a hearing with the Minister of Petroleum and Mineral Resources (MPRM) and the agencies under his supervision. We are posting scanned presentations from MPRM, EITI, ANPM, TimorGAP and the Institute for Petroleum and Geology (IPG). They propose to double the state subsidy to TimorGAP from $6 million in 2016 to $11.9 million in 2017. Many members of Parliament asked heated questions, but there was not time for the Minister's team to answer them, and later provided answers in writing.

Debate iha Parlamentu Nasional

Parlamentu fahe kalendáriu (Portuges) ba diskusaun orsamentu nian. Komisaun sira halo ona audiénsia sira ne’ebé hahú iha 26 Outubru to loron 8 Novembru. Parlamentu sei hala’o seminar ida iha loron 9-10 Novembru, no relatóriu Komisaun sira hotu sei finalize iha loron 21 Novembru. Debate jerál sei hala’o iha loron 22-24 Novembru, no debate ba espesialidade sei hahú hosi loron 25 Novembru to aprovasaun global iha loron 9 Dezembru.

Iha loron 27 Outubru, Konsellu Konsultativu Fundu Petrolíferu hala’o konferénsia loron ida kona-ba Fundu Petrolíferu. La’o Hamutuk publika ona aprezentasaun sira hosi TimorGAP, Ministériu Finansa, Banku Sentrál no ANPM. Maske apresentador sira hosi setór finanseiru nian mai ho informasaun katak rendimentu mina-rai atu to iha nia roha, maibé apresentador sira hosi setór petróleu kontinua mehi ba “barríl liu biliaun 6” hosi rezerva petroleum no gas ne’ebé seidauk esploita, ne’ebé bele fornese reseita petróleu ho osan liu biliaun $40 hosi atividade upstream nian ba Timor-Leste durante tinan 25 ba oin. Maske nune’e, La'o Hamutuk hatudu sai, area sira ne’ebé durante ne’e esplora ona hodi kompañia petróleu sira no sira deside la kontinua tanba projetu sira ne’e la viavel (esklui Greater Sunrise ne’ebé pendente hela tanba disputa hela ho Australia), no restu sira seluk sai laiha valor.

Iha 28 Outubru, Komisaun C no D Parlamentu hala’o audiénsia ho Ministériu Petróleu no Rekursu Mineral (MPRM) no ajénsia sira iha nia supervizaun nia okos. Ami publika aprezentasaun sira ne’ebé ami scan hosi MPRM, EITI, ANPM, TimorGAP  no Institutu Petróleu no Geolojia (IPG). Sira proposta atu aumenta duplu subsídiu hosi estadu nian ba TimorGAP hosi tokon $6 iha 2016 to tokon $11.9 iha 2017. Membru Parlamentu barak mak husu pergunta todan sira ba sira, maibé laiha tempu ekipa Ministru nian atu hatán ba Parlamentár sira, nune’e, Ministru fó resposta ho hakerek.

On 7 November, La'o Hamutuk testified to Committee C together with the NGO Forum and other civil society groups and presented this written submission (Tetum original), which we abridged for our blog.

On 9-10 November, Parliament organized a seminar on the proposed 2017 budget, announced by UNDP (Port.) with this agenda. We have uploaded presentations by La'o Hamutuk (Tetum), UN Women, the Ministry of Finance (Tetum) and the World Bank, and would welcome others. Afterwards, the Government issued a press release about its participation.

On 18 November, Parliament approved a process and agenda for plenary consideration of the 2017 budget law. Debate in generality will take place on 23-25 November. From 30 November to 3 December, a closed-door ad hoc committee will consider proposed amendments, followed by plenary debate on the specifics, which will conclude on 14 December.

The general plenary debate began on 23 November with a speech by Prime Minister Rui Araujo (also partial video), followed by policy declarations from CNRT, Fretilin, Partidu Demokratiku and Frente Mudansa (all Tetum). A government press release summarized the PM's presentation.

The Prime Minister divided proposed expenditures into recurrent (for functioning of the state machinery) and capital. He said that capital expenditures include the budget categories of Development Capital and Public Transfers, which he said are to be invested to support economic diversification and job creation. He explained that "front-loading" for capital expenditures -- taking more than the sustainable amount from the Petroleum Fund -- is justified because they will produce social, economic and financial returns in the medium and long term.

However, very little of the $421 million in Public Transfers (the largest category, comprising 30% of the entire budget) is being spent on things which produce returns over the medium or long term:

Parliament's Committee on Public Finances (C) presented a 109-page report (7 MB Portuguese) to Parliament including recommendations from the other Standing Committees. After three days of general debate, Parliament unanimously approved the budget in generality in the night of 25 November (government press release). Much of the discussion of specific details and amendments will take place in a closed-door Ad-Hoc Committee, which will present a unified text to Parliament for approval by 14 December.

Iha loron 7 Novembru, La’o Hamutuk fó testemuña ba Komisaun C hamutuk ho NGO Forum no grupu sosiedade sivíl sira seluk no aprezenta submisaun hakerek nian.

Iha loron 9-10 Novembru, Parlamentu organiza semináriu ida kona ba proposta OJE 2017, anunsia husi PNUD (Port.) ho agenda ida ne'e. Ami upload ona aprezentasaun sira husi La'o Hamutuk, UN Women, Ministériu Finansas no Banku Mundial (Ingles), no ami pronto atu simu sira seluk. Hafoin eventu ida ne'e, Governu fó sai komunikadu imprensa kona ba sira nia partisipasaun.

Iha loron 18 Novembru, Parlamentu aprova Guião da Discussão e Votação ba diskusaun iha Plenária kona-ba proposta OJE 2017. Debate iha jeneralidade sei akontese durante loron 23-25 Novembru. Husi 30 Novembru ba 3 Dezembru, Komisaun Eventual hasoru malu iha segredu atu konsidera proposta alterasaun sira. Tuir mai, debate iha Plenária kona ba espesialidade hahú, no sei remata iha loron 14 Dezembru.

Debate Plenária iha jeneralidade hahú iha loron 23 November ho diskursu husi Primeiru-Ministru Rui Araújo (video husi parte), no mós deklarasaun polítiku husi CNRT, Fretilin, Partidu Demokratiku no Frente Mudansa. Governu fo sai komunikadu imprensa ida atu sumariza diskursu husi PM.

Primeiru-Ministru fahe proposta despeza nian ba buat rua, ida mak rekerente (ba funsionamentu mákina estadu) no ida seluk mak kapitál. Nia dehan despeza kapitál ne’e inklui kategoria orsamentu Kapitál Dezenvolvimentu no Transferénsia Públiku, ne’ebé nia hateten atu investe hodi suporta diversifikasaun ekonómiku no kriasaun kampu servisu. Nia esplika katak ‘front-loading’ ba despeza kapitál – foti liu montante sustentável hosi Fundu Petróleu – ne’e nia justifikasaun tanba sira sei prodús retornu sosiál, ekonómiku no finanseiru iha médiu no longu prazu.

Maske nune’e, osan uitoan liu hosi tokon $421 hosi Transferénsia Públiku (kategoria boot liu, ne’ebé mai hosi 30% hosi total orsamentu) ne’e atu gasta ba buat sira ne’ebé sei prodús retornu ba médiu ka longu prazu:

Komisaun Parlamentár kona-ba Finansa Públiku (Komisaun C) aprezenta relatóriu ho pájina 109 (7 MB iha Portugés) ba Parlamentu inklui rekomendasaun sira hosi Komisaun Parlamentár sira seluk. Hafoin loron tolu ba debate jerál, Parlamentu ho unanimidade aprova orsamentu iha jeneralidade iha kalan 25 Novembru (governu nia komunikadu imprensa). Diskusaun barak kona-ba asuntu sira ne’ebé espesífiku no detallu no alterasaun sira sei deside iha Komisaun Eventual ne’ebé taka ba públiku, ne’ebé sei aprezenta testu úniku ida ba Parlamentu atu aprova molok 14 Dezembru.

On 5 December, after considering about 80 proposed amendments behind closed doors, the Eventual Committee issued its report (Port. original) and a Single Substitute Text (Port.) combining the Budget and Social Security laws. They accepted only about 25 of the proposed amendments, after rejecting 6 as redundant and refusing to consider 23 which would have modified the Infrastructure Fund, reduced capital spending, increased the budget envelope, or reduced appropriations for legal services, tax reform or external audit.

On Tuesday, 6 December, La'o Hamutuk hosted a public meeting on the proposed 2017 budget and Timor-Leste's economic sustainability, with presentations from La'o Hamutuk (also Powerpoint) and Timor-Leste's Central Bank (also Powerpoint) (all Tetum).

Parliament finished its debate and unanimously approved the 2017 Budget Law on 9 December, with a closing speech by the Prime Minister. Following technical revisions, it was sent to the President for promulgation or veto.

On 28 December, the President promulgated the budget and sent a message to Parliament, suggesting once again that Timor-Leste should not overspend its Petroleum Fund but should invest more in education, justice and people's living conditions, rather than large infrastructure projects.

Iha loron 5 Dezembru, hafoin hetan proposta alterasaun 80 iha enkontru ne’ebé taka ba públiku, Komisaun Eventual fó sai sira nia Relatóriu (Port.) no testu úniku (Port.) inklui proposta Orsamentu Estadu no proposta Orsamentu Seguransa Sosiál. Komisaun aseita alterasaun 25, rejeita 6 hanesan duplikasaun, no lakohi diskute 23 ne’ebé koko altera Fundu Infrastrutura, hamenus despeza kapitál, aumenta envelope fiskál, ka hamenus osan ba servisu legal, reforma fiskál, ka audit esternal.

Iha Tersa Feira, 6 Dezembru, La’o Hamutuk organiza enkontru públiku ida kona-ba proposta orsamentu 2017 no sustentabilidade ekonómiku Timor-Leste nian, ne’ebé oradór sira sei mai hosi La'o Hamutuk (mós Powerpoint) no Banku Sentrál Timor-Leste (mós Powerpoint).

Plenária parlamentu vota aprovasaun final ba Lei Orsamentu 2017 ho unanimidade iha loron 9 Dezembru, ho intervensaun husi Primeiru-Ministru. Hafoin revizaun tékniku, PN haruka proposta lei ba Prezidente Repúblika hodi hetan promulgasaun ka veto.

Iha loron 28 Dezembru, Prezidente Repúblika promulga Orsamentu Jerál Estadu ba 2017 no haruka mensajen ida ba Parlamentu Nasionál. Nia sujere katak Timor-Leste labele depende de'it ba finansia hosi Fundu Mina-Rai, no presiza investe maka’as liután iha edukasaun kuadru sira-nian, iha estabilidade setór justisa nian no mós iha sidadaun sira-nia kondisaun moris, duké antesipa investimentu públiku hodi halo infraestrutura boot hirak.

Documents (newest first)Dokumentu

Analysis and commentary

Analiza no komentáriu

Links to relevant topics on La'o Hamutuk's websiteLiga ba tópiku sira ne’ebé relevante iha website La’o Hamutuk

 

The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua D. Alberto Ricardo, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
email: 
info@laohamutuk.org    Web: http://www.laohamutuk.org    Blog: laohamutuk.blogspot.com