2017-2018 General State Budget
Orsamentu Jerál Estadu 2017-2018
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.
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.
|Budget rectification by the new government|
The Seventh Constitutional Government took office in October 2017, following the July Parliamentary election. Although his program had not yet been accepted by Parliament, Prime Minister Alkatiri defined a new structure for his Government and submitted a proposed rectification budget (Port.) to Parliament on 9 November. La'o Hamutuk has scanned the documents and translated them to English, including an Explanation, Law and Table I (revenues), Table II (expenditures), and Table III (autonomous agencies). In mid-December, the government released Budget Book 1 (overview and tables) and Book 3A (Infrastructure Fund) with more explanation and details.
The proposed new budget increases appropriations for 2017 from $1,387 million in the original 2017 budget to $1,610 million. The $223 million in additional spending, combined with $13m in savings, will pay for:
$146.7m for projects contracted under the Infrastructure Fund
$ 53.5m for paying debts, generator fuel, and other committed expenditures
$ 36.1m for salaries and pension, some goods and services, and TL Cement
$ 0.4m for new structures of the new Government.
See below for details of the largest line items. Total appropriated expenditures by category are as follows:
|Salaries & wages||209.7||216.3|
|Goods & services||395.0||463.8|
Using newer information on petroleum revenue and returns on investing the Petroleum Fund, the rectification budget expects Timor-Leste to receive $1,558m from these sources this year, up from $1,106m in the original 2017 budget. Although the Estimated Sustainable Income remains unchanged, this increased revenue makes it possible to withdraw $223m more from the Fund without diminishing its balance. The rectification budget uses the same figures for domestic revenues and borrowing as the original 2017 budget, and makes no estimates beyond 2017.
La'o Hamutuk compared its tables with the enacted 2017 budget and identified the following as the largest increases in expenditures this year:
$146.7 million (a 66% net increase) in non-borrowed money spent through the Infrastructure Fund. The increase includes $76m for roads, $25m for electricity infrastructure, $35m more for the South Coast Highway, $14m for Suai Airport, and $8m for bridges. (These add up to more than the total because other projects were cut.)
$ 37.8m (up 64%) for the Directorate-General for Electricity, for generator fuel for Hera and Betano
$ 13.7m (up 112%) for Legal Services, probably related to the maritime boundary dispute with Australia
$ 7.0m (up 82%) for the Contingency Reserve, which can be spent on anything without additional Parliamentary approval
$ 6.6m (up 14%) for salaries in the Ministry of Education, mostly for primary school.
$ 5.8m for "Fast Customs Clearance," a new item under Whole of Government
$ 5.4m (up 135%) for the Counterpart Fund. The budget documents do not provide specifics, although this is probably to subsidize the private sector TL Cement project in Baucau.
$ 5.0m (up 146%) for the National Directorate for Hospital and Emergency Services, to pay past debts for overseas medical care.
$ 2.0m for "Payment of Timor Telecom," a new item under Whole of Government
The proposal also includes a few reductions (in addition to agencies which are eliminated in the new government structure), of which the largest are:
$ 5.5m (down 45%) for the Directorate-General for water, sanitation and urbanization
$ 4.3m (down 85%) for Dili drainage system (due to delays in approval of the loan from China)
$ 5.2m (down 5%) for veterans pensions
$ 2.6m (down 71%) for education and health infrastructure
$ 2.1m (down 15%) for the 2017 elections
|Orsamentu retifikativu husi Governu foun|
On 15 November, Parliamentary Committee C (Public Finances) recommended not to consider the rectification budget under an expedited process for reasons which have little to do with the substance of the proposal. The plenary agreed on 20 November, as announced by Government and Parliament. On the same day, the majority opposition introduced a Censure (no confidence) Motion into Parliament because the government had not resubmitted its program within 30 days after it was rejected the first time.
Also on 20 November, President Lu-Olo promulgated Decree-Law 35/2017, the organic law describing the structure of the 7th Constitutional Government.
The normal budget debate process in Parliament takes more than a month, and discussions on the rectification budget are being delayed by parliamentary maneuvers on both sides. Parliamentary President Aniceto Guterres is not invoking plenary sessions because he doesn't want to debate the no confidence motion or a subsequent motion to remove him as President, while the majority opposition is boycotting Committee meetings, preventing the presence of a quorum.
The State Budget for 2018 was not enacted before the year began. According to Article 31 of the Budget and Financial Management Law, the state can function without an enacted budget under a "duodecimal regime" in which 1/12 of each line item appropriation in the 2017 budget can be spent during each month of 2018. The law does not consider a change in government structure, as has just taken place. On 6 December, the Council of Ministers sent Parliament a proposed amendment to the Budget and Financial Management Law which would include revenues in the duodecimal system; the Ministers also discussed the proposed fiscal envelope for the 2018 budget.
The Minister of Finance presented the 2017 budget rectification proposal to Committee C on 11 December, as well as publishing two Budget Books on its website. However, on 12 December the Committee voted down the proposal by a 6-5 vote. The majority opposition said that the rectification budget should not be discussed before the government program is approved, and that the focus should be on the budget for 2018.
However, Parliamentary President Aniceto Guterres scheduled the rectification budget for plenary debate on 14 December, but on that day he postponed it until the following week due to security concerns. On Monday, 18 December, Parliamentary leaders decided not to take up the rectification budget first, but the President scheduled it for the next day, to be followed by discussion of the motions of no confidence and to dismiss the President.
On 19 December, following a seven-hour debate, Parliament approved the opposition's appeal of President Guterres' decision to schedule the rectification budget, effectively killing the proposal. They vote was 35-5, after most of the Fretilin and PD Members walked out.
Parliament recessed until 8 January, and no plenary session was called before the President dissolved Parliament on 26 January. New elections will be held on 12 May. Parliament never acted on the rectification of the 2017 budget or on the State Budget for 2018, which is unlikely to be enacted before August.
Until then, Article 31 of the Budget and Financial Management Law allows spending to continue according to a duodecimal system -- 1/12 of each 2017 budget line each month. In late February, the Ministry of Finance published Budget Books detailing duodecimal appropriations for January and February 2018, totaling around $100 million each month, and a press release announcing $104.6 million in appropriations for March. According to the Transparency Portal, monthly executed spending in January and February was about $60 million per month, but it rose to $86 million (including $8 million in loan disbursements) in March.
As discussed on our web page on the Petroleum Fund, we understand that more money cannot be transferred from the Petroleum Fund without a new Parliamentary law. La'o Hamutuk estimates that the state treasury, combined with non-petroleum revenues, can support government operations for four to six months. In May or June, the state will run out of money to cover operations, and it is unclear if a dissolved Parliament can authorize transfers from the Petroleum Fund. The Central Bank is not allowed to lend money to the Government, and the shortfall by August could be more than $100 million.
Update, 11 July: Although $70 million was transferred from the Fund in May, the cash flow problem became critical in July. La'o Hamutuk analyzed this issue and wrote a submission to Parliament about an over-broad legislative effort to address the emergency.
On 20 July, Parliament approved a law to authorize transferring $140 million from the Petroleum Fund to cover the period until a 2018 budget is enacted. La'o Hamutuk supported this legislation, as it did not revise any underlying laws. President Lu-Olo asked the Appeals Court for an advisory opinion before he promulgated the law on 10 August.
State Budget for 2018
Also on 20 July, the Council of Ministers approved a fiscal envelope of $1.353 billion ($1.218 bn without loans) for the 2018 State Budget, incorporating duodecimal spending which has already occurred. On 24 July, the Ministry of Finance released a Budget Circular and the presentation from a working session on enacting the 2018 Budget. After each Ministry refined its proposal, the CoM approved a proposed budget totaling $1.279.6 billion (including $62 million in loans and $44 million carried over from 2017) on 2 August.
The proposed 2018 budget was sent to Parliament a few days later, including an Explanation of Motives (also Port.) and a proposed law and annexes (Port.). They also provided a set of budget books, of which we have scanned the overview (Port. or Tetum), Infrastructure Fund (Port.), and Human Capital Development Fund (Port.) volumes.
On 13 August, Committee C presented a report (Port.) on whether to consider the 2018 budget proposal under an urgent schedule. After discussion, the Parliamentary Plenary accepted the recommendation on a vote of 40 in favor, 0 against and 20 abstentions. Fretilin explained why they abstained. The "urgent" schedule, which includes holidays on 22, 26 and 30 August, will be:
9 Aug: Government budget proposal received
13 Aug: Discussion & vote on urgent schedule
14-21 Aug: 'Public' hearings
23 Aug: Each specialized committee finishes its report
27 Aug: Committee C presents its report and recommendations
28-29 Aug: Plenary discussion and vote on generality
3-7 Sep: Plenary discussion and vote on specifics
10 Sep: Final editing & transmission to the President of the Republic
|Documents (newest first)|
Proposed 2018 Budget Books (Aug 2018)
Proposed 2018 Budget Law (Port.) as passed by CoM (2 Aug 2018)
Explanation (also Port.) (2 Aug 2018)
MoF Budget Circular on preparing the 2018 Budget, and presentation from a working session (24 Jul 2018)
Budget Books for the 2018 monthly duodecimal appropriations
Proposed (never enacted) 2017 Rectification Budget books, 11 Dec 2017
Organic Law of the 7th Government, 21 Nov 2017
Proposed (rejected) rectification budget for 2017, 9 Nov 2017 (scanned Port.)
Budget Execution Reports Jan-Mar 2017, Jan-Jun 2017, Jan-Sep 2017
Guide to 2017 State Budget (Tetum), 2 Feb. 2017
Final 2017 State Budget books, 2 Feb. 2017
Guide to the 2017 Budget (Tetum) by the Ministry of Finance, Feb 2017
Press release from President Taur Matan Ruak announcing the promulgation of the Budget (Port/Tetum), 28 Dec. 2016
Speech by Prime Minister Rui Araújo closing the general budget debate in Parliament, 9 Dec. 2016
Report by Parliamentary Eventual Committee (also Port. original) and Single Substitute Text (Port.) combining state budget law, social security law and agreed amendments, 5 Dec. 2016
Speech by Prime Minister Rui Araújo (also partial video), presenting budget to Parliament, 23 Nov. 2016
Report and opinion from Parliamentary standing committees (Port.) on 2017 budget proposal, 22 Nov. 2016
Parliamentary process for plenary debate (Port.), 18 Nov 2016
Budget Execution Reports Jan-Mar 2016, Jan-Jun 2016, Jan-Sep 2016
2016 Quarterly Fiscal Bulletin:
Gov't Finance Statistics Jan-Mar 2016, Apr-Jun 2016
Chart of Accounts Jan-Mar 2016, Apr-Jun 2016
Proposed 2017 State Budget books, 14 Oct 2016
Proposed law for 2017 General State Budget submitted to Parliament (Portuguese), 14 Oct 2016
Presidential message to Parliament on promulgating the Budget Rectification Law (also Portuguese), 8 Aug 2016
Report from Parliament Finances Committee (C) on proposed revision also Port, 11 Jul 2016
Report from Parliament Infrastructure Committee (E) on proposed revision also Port, 8 Jul 2016
Proposed 2016 budget revision, 27 Jun 2016
Justification for withdrawal exceeding ESI also Port, 27 Jun 2016
Exposicao de Motivos (Port.) for proposed budget rectification, 22 Jun 2016
Original enacted 2016 State Budget books, 4 Mar 2016
GSB Law No. 1/2016 as published in the Official Gazette (Port.), 14 Jan 2016
Presidential message to Parliament on promulgating the Budget Law (also Portuguese), 14 Jan 2016
Ministry of Finance transparency portal which includes current budget execution information and procurement and other data
MoF Sirkular Preparasaun OJE 2018 no aprezentasaun husi sesaun trabalhu (24 Jul 2018)
- Relatoriu Ezekusaun Orsamentu Jan-Mar 2018
Livru Rejime Duodesimal Mensal ba tinan 2018
Proposta (la aprova) Livru Orsamentu Retifikativu ba 2017, 11 Dez 2017
Lei Organica do VII Governu, 21 Nov 2017 (Port.)
Proposta (la aprova) Orsamentu Retifikativu ba tinan 2017, 9 Nov 2017 (scanned Port.)
Relatoriu Ezekusaun Orsamentu Jan-Mar 2017, Jan-Jun 2017, Jan-Set 2017
Matadalan ba OGE 2017, 2 Fev. 2017
Final Orsamentu Jerál Estadu ba 2017, 2 Fev 2017
Matadalan ba OGE 2017 husi Ministeriu Finansas, Fev 2017
Komunikadu Imprensa husi Prezidente Taur Matan Ruak anuncia promulgasaun OJE 2017, 28 Dez. 2016
Diskursu husi Primeiru-Ministru Rui Araújo ne’ebé taka debate OJE 2017 iha Parlamentu, 9 Dez. 2016
Relatoriu husi Komisaun Eventual PN nian (Port.) no Testu Uniku (Port.) inkorpora lei OJE, lei Seguransa Sosiál, no alterasaun Komisaun aprova, 5 Dez. 2016
Diskursu husi Primeiru-Ministru Rui Araújo ne’ebé aprezenta OJE 2017 ba Parlamentu (no video husi parte), 23 Nov. 2016
Relatoriu no Paraser husi Komisaun Parlamentu (Port.) nian kona-ba OJE 2017, 22 Nov. 2016
Guião da Discussão e Votação ba proposta OJE 2017, 18 Nov 2016
Relatoriu Ezekusaun Orsamentu Jan-Mar 2016, Jan-Jun 2016, Jan-Set 2016
2016 Quarterly Fiscal Bulletin:
Gov't Finance Statistics Jan-Mar 2016, Abr-Jun 2016
Chart of Accounts Jan-Mar 2016, Abr-Jun 2016
Proposta Orsamentu Jerál Estadu ba 2017, 14 Out 2016
Proposta Lei ba Orsamentu Jerál Estadu ba tinan 2017 fo ba Parlamentu Nasional (Portuges), 14 Out 2016
Mensajem husi Prezidente ba Parlamentu kona ba promulgasaun Lei Orsamentu Retifikativu 2016 (Portuges), 8 Ago 2016
Parecer husi Comissão de Finanças Públicas (C) ba proposta OR, 11 Jul 2016
Parecer husi Comissão das Infraestruturas, Transportes e Comunicações (E) ba proposta OR, 8 Jul 2016
Proposta Orçamento Rectificativo, 27 Jun 2016
Justificação das Transferências a partir do Fundo Petrolífero, Jun 2016
Exposicao de Motivos (Port.) ba proposta orsamentu retifikativu, 22 Jun 2016
Orsamentu Jerál Estadu ba 2016 Orijinal Final, 4 Mar 2016
Matadalan ba OJE2016 husi Min. Finansas, 4 Mar 2016
OJE Lei No. 1/2016 publika ona iha Jornal da Republica (Port.), 14 Jan 2016
Mensajem husi Prezidente ba Parlamentu kona ba promulgasaun Lei OJE 2016 (mos Portuges), 14 Jan 2016
Portal transparénsia Ministériu Finansas nian ne’ebé inklui informasaun kona-ba ezekusaun orsamentu, aprovizionamentu, no dadus sira seluk.
Analysis and commentary
Confronting the state's temporary cash flow problem
LH Submission to Parliament and Press release (11 July 2018)
Presentations to La'o Hamutuk public meeting by La'o Hamutuk (also Powerpoint) and Central Bank (also Powerpoint) (all Tetum), 6 Dec. 2016
ADB Budget analysis and fiscal performance, from Pacific Economic Monitor, Dec. 2016
Policy declarations from CNRT, Fretilin, Frente Mudansa and Partidu Demokratiku (all Tetum), 23 Nov. 2016
Core Group Transparency submission to Parliament on proposed 2017 budget (Tetum), 22 Nov 2016
Response from Petroleum-related agencies to Parliamentary questions (Tetum), Nov 2016
Rede Feto submission to Parliament on proposed 2017 budget (Tetum), 9 Nov 2016
La'o Hamutuk blog: Spinning straw into gold: Facts remain true, regardless of public relations responding to government economic claims, 22 Nov. 2016
Presentations to Parliamentary seminar from La'o Hamutuk (Tetum) (mos PowerPoint), UN Women, Ministry of Finance (Tetum) and World Bank, 9-10 Nov 2016
UN Women analysis of 2017 budget from a Gender Perspective, 8 Nov 2016
La'o Hamutuk Submission to Parliament on proposed 2017 budget, 7 Nov 2016
Submissions to Parliament from Ministry of Petroleum and Mineral Resources, National Petroleum and Minerals Authority, TimorGAP, EITI secretariat and the Institute for Petroleum and Geology (IPG), 28 Oct 2016
Presentations to PFCC conference on the Petroleum Fund by TimorGAP, the Ministry of Finance, the Central Bank and the National Petroleum and Minerals Authority (ANPM), 27 Oct 2016
La'o Hamutuk submission to President asking him to veto the proposed revision of the 2016 budget, 28 July 2016
La'o Hamutuk Submission to Parliament on proposed revision, 12 July 2016
La'o Hamutuk letter to President about the budget (Tetum original) (22 Dec 2015)
La'o Hamutuk submission to Parliament about the proposed 2016 GSB (18 Nov 2016)
Analiza no komentáriu
Enfrenta problema finansial temporáriu
LH nia Submisaun ba Parlamentu no Komunikadu imprensa (11 Jullu 2018)
JSMP: Prezensa Prezidente Autóridade ZEEMS hanesan deputadu durante diskusaun OJE kada tinan: Ne’e infrasaun ba lei, konflitu interese no inkompatibilidade prevalese, 20 Dez. 2016
Blog LH nian: Hafalun fatuk ho osan mean: Faktus mak faktus nafatin, maske relasaun públiku konta buat seluk, 15 Dez. 2016
Aprezentasaun ba La'o Hamutuk nia enkontru públiku husi La'o Hamutuk (mós Powerpoint) no Banku Sentrál (mós Powerpoint), 6 Dez. 2016
Deklarasun politika husi CNRT, Fretilin, Frente Mudansa no Partidu Demokratiku, 23 Nov. 2016
Core Group Transparency submisaun ba PN kona-ba proposta OJE 2017, 22 Nov 2016
Resposta husi MPRM no ninia staf ba Deputadu/a nia pregunta sira, Nov 2016
Rede Feto submisaun ba PN kona-ba Analize OJE 2017, 9 Nov 2016
Aprezentasaun sira ba Parlamentu nia semináriu husi La'o Hamutuk, UN Women, Ministériu Finansas no Banku Mundial (Ingles), 9-10 Nov 2016
UN Women Análize kona-ba OJE 2017 hosi Perspektiva Jéneru, 8 Nov 2016
La'o Hamutuk nia submisaun ba PN kona-ba proposta OJE 2017, 7 Nov 2016
Submisaun sira ba Parlamentu husi Ministeriu Petroleu no Rekursus Minerais, Autoridade Nacional de Petroléo e Mineral (ANPM), TimorGAP, E.P., Sekretariadu EITI no Instituto do Petroleo e Geologia, I.P. (IPG), 28 Out 2016
Aprezentasaun sira ba konferensia KKFP nian husi TimorGAP, Ministeriu Finansas, Banku Sentral no Autoridade Nasional Petroleu no Minerais (ANPM), 27 Out 2016
La'o Hamutuk nia submisaun ba Prezidente Repúblika ne’ebé husu nia atu veto proposta Orsamentu Retifikativu ba OJE 2016, 28 Jul 2016
Programa Radio Igualdade: Orsamentu Retifikativu 2016 (Jul 2016)
La'o Hamutuk nia submisaun ba PN kona-ba proposta OR, 12 Jullu 2016
La'o Hamutuk nia karta ba Prezidente kona-ba OJE 2016 (22 Dez 2015)
Programa Radio Igualdade Proposta OJE 2016 (Dez 2015)
La'o Hamutuk nia submisaun ba PN kona-ba proposta OJE 2016 (18 Nov 2015)
|Links to relevant topics on La'o Hamutuk's website||Liga ba tópiku sira ne’ebé relevante iha website La’o Hamutuk|