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2022 General State Budget
Orsamentu Jerál Estadu ba 2022

Started 29 June 2021.  Revised 19 January 2022.

Link to page on 2021 state budget.      Liga ba pájina kona-ba OJE 2021

Contents of this page

Konteúdu pájina ida ne’e

Revision to the budget process

At the end of 2020, the Council of Ministers asked Parliament to enact a new Law on the Framework for the General State Budget and Public Financial Management to replace Law No 13/2009 on Budget and Financial Management which defines the budget process. Parliament began hearings in June and La'o Hamutuk testified and wrote a submission, which was covered by Tatoli and the LH Bulletin. Committee C (Public Finances) made a report (Portuguese, partial English translation) on 30 June, and plenary debate began on 5 July. The plenary approved the proposed law in generality on 6 July by a vote of 37-12 (11 abstentions) and sent it back to Committee C for detailed analysis and discussion with the Government. On 9 August, La'o Hamutuk's Celestino Gusmao discussed the proposal on GMN-TV's Grande Entrevista program (video).

On 17 August, Committee C finished its discussion and made many amendments to the draft law, approving it in speciality. On 24 September, the Committee submitted a report (original Portuguese) to the Parliamentary plenary, which was preoccupied with other issues.

As this proposed law was not enacted in 2021, the 2022 State Budget was proposed and approved under the existing process, with some modifications.

On 10 January 2022, Parliament voted 37-0 (two abstentions) to approve (Tetum) the revised bill. Although CNRT had objected to some of the changes, they did not participate in the debate. After technical editing, the proposed law will be sent to the President for promulgation (or veto).

2022 Budget Process begins

In the beginning of June 2021, the Ministry of Finance released their proposed calendar for adopting the 2022 State Budget. The Government will establish the overall parameters in July, evaluate proposals from each ministry during August, and submit the draft budget to Parliament by 1 October.


On 29 June, Government held an all-day budget seminar for public officials, civil society, development partners and others. They gave presentations (in Tetum) on:

A Government press release (Tetum) on 12 July summarized the seminar, including the six priorities for the 2022 budget: development of human capital (education, professional training and health); housing and social inclusion; productive sectors (agriculture and tourism), environment and connectivity; private sector development;  rural development; and good governance. The budget ceiling was set at $1.5 billion. Two days later, on 14 July, the Council of Ministers increased the ceiling for the 2022 budget to $1.57 billion.

On 25 August, the Council of Ministers decided that the Budget Policy committee (CROP) would be chaired by the Prime Minister and include the Deputy PMs, Minister for the Presidency of the Council of Ministers, Coordinating Minister for Economic Affairs, and the Ministers for Finance, Education/Youth/Sport, Transport/Communications and State Administration. After meeting from 2-16 September, CROP increased the proposed budget ceiling to $1.68 billion.

On 27 September, Tatoli reported that the proposed budget for 2022 will be allocated as:

  • $233m for salaries and benefits

  • $450m for goods and services

  • $566m for public transfers

  • $  24m for minor capital

  • $402m for development capital (including loans)

The budget proposal was approved by the Council of Ministers on 6 October, as reported by Tatoli.

Revizaun ba prosesu no estrutura orsamentál

Iha fulan Dezembru 2020, Konsellu Ministru husu Parlamentu Nasional atu aprova lei foun ida kona-ba Enquadramento do Orçamento Geral do Estado e da gestão financeira pública (Port.) ne’ebé sei troka ba Lei Nu 13/2009 Orçamento e Gestão Financeira (Port.) ne’ebé estabelese prosesu orsamentál. Parlamentu hahú audiénsia sira iha fulan Juñu no La'o Hamutuk fó testemuña no haruka submisaun ida, ne’ebé hetan kobertura iha Tatoli no Buletin LH nian. Komisaun C halo relatóriu (Port.) iha loron 30 Juñu, no debate iha plenária hahú iha loron 5 Jullu. Plenária aprova proposta lei iha jeneralidade iha loron 6 Jullu ho votasaun 37-12 (abstensaun 11) no haruka fali ba Komisaun C atu analiza ho detallu no negosiasaun ho Governu. Iha loron 9 Agostu, Celestino Gusmão husi La'o Hamutuk diskute proposta ne'e iha programa Grande Entrevista iha GMN-TV (video).

Iha loron 17 Agostu, Komisaun C nia diskusaun remata, ho alterasaun barak ba proposta lei. Komisaun aprova lei ida ne'e iha espesialidade. Iha loron 24 Setembru, Komisaun C haruka  relatoriu ida (Port.) ba plenária Parlamentár, ne’ebé okupadu ho asuntu sira seluk.

Tanba proposta lei seidauk aprova durante tinan 2021, OJE 2022 tuir prosesu ne’ebé eziste tiha ona, ho mudansa balun.

Iha loron 10 Janeiru 2022, Parlamentu vota 37-0 (ho abstensaun rua) atu aprova proposta lei ho alterasaun. Maske partidu CNRT protesta alterasaun balun, sira la partisipa iha debate iha plenária. Hafoin redasaun tékniku, PN sei haruka proposta lei ida ne'e ba Prezidente Repúblika atu promulga (ka veta).

Prosesu Orsamentál ba OJE 2022 hahú

Iha loron 7 Juñu 2021, Ministeriu Finansas fó sai sira nia proposta kalendáriu ba aprovasaun OJE 2022. Governu sei aprova envelope jeral iha fulan Jullu, avalia proposta sira husi kada ministériu iha fulan Agostu, no haruka ezbosu orsamentu ba Parlamentu iha loron 1 Outubru.


Iha loron 29 Juñu, Governu halo semináriu ba loron tomak ba ofisiál sira, sosiedade sivíl, parseiru dezenvolvimentu no sira seluk. Sira fó aprezentasaun kona-ba:

Governu fó sai komunikadu imprensa ida iha 12 Jullu ne’ebé sumariza husi semináriu, inklui prioridade neen ba orsamentu 2022: dezenvolvimentu kapitál umanu (edukasaun, formasaun profissional no saúde); habitasaun no inkluzaun sosiál; setór produtivu sira (agrikultura no turismo), ambiente no konektividade; dezenvolvimentu setór privadu; dezenvolvimentu rural; no boa governasaun. Tetu fiscal ne’ebé hatuur ona mak biliaun $1.5. Loron rua tuir mai, iha 14 Jullu, Konsellu Ministru hasa’e barreira ba orsamentu 2022 too iha biliaun $1.57.

Iha 25 Agostu, Konsellu Ministru deside atu Komisaun Revizaun Orsamentu Polítika (KROP) sei prezide husi Primeiru Ministru inklui Ministru Prezidente Konsellu Ministru, Ministru Koordenadór Asuntu Ekonómiku, no Ministru/a sira ba Finansa, Edukasaun/Juventude/Desportu, Transporte/Komunikasaun no Administrasaun Estatal. Hafoin enkontru husi 2-16 Setembru, KROP hasa’e bareira ba proposta orsamentu too biliaun $1.68.

Iha 27 Setembru, Ministeriu Finansas fó sai katak proposta orsamentu ba tinan 2022 sei inklui:

  • Tokon $233 ba saláriu no vensimentu

  • Tokon $450 ba bens no servisu

  • Tokon $566 ba transferénsia públika

  • Tokon $  24 ba kapitál minor

  • Tokon $402 ba kapitál dezenvolvimentu (inklui empréstimu)

Iha loron 6 Outubru, Konsellu Ministru aprova proposta OJE 2022, hanesan notisia iha Tatoli.

Discussion and approval in National Parliament

On 15 October, the Government submitted its $1,675m budget proposal to Parliament, including a draft law and nine accompanying budget books. It includes:

  • $256m for salaries and benefits

  • $438m for goods and services

  • $513m for public transfers

  • $  32m for minor capital

  • $436m for development capital (including $51m in loans)

The proposal would transfer $1.042 billion from the Petroleum Fund, nearly double the $554 million Estimated Sustainable Income. As noted on page 38 of Budget Book 1, the loan from the Petroleum Fund to TimorGAP has been revalued from $701 million to $0 for the ESI calculation, which was later reported by Lusa.

Parliament organized a 2022 Budget Overview seminar in Tibar on 27-29 October, and La'o Hamutuk was invited to give a presentation (Tetum).

On 15 November, La'o Hamutuk presented a written submission (Tetum) and testified before Committee C of the National Parliament, together with the NGO Forum and Mata Dalan Institute. We summarized our submission in a press release, blog, and presentation (Tetum, also PDF) we gave to a media briefing. It was reported by Tatoli, Lusa and GMN-TV, among others.

The main points of our submission are:

  • Parliament and the public need accurate and complete information.

    • We need better transparency from the Petroleum Fund and TimorGAP, including annual reports and information about the write-down of the value of the Greater Sunrise reserve (and, consequently, the PF's investment in TimorGAP) to zero.

    • Projections for the future should be done seriously -- not through a simplistic 4% annual increase on each recurrent line. More information is needed on future revenues from Bayu-Undan.

    • The objectives of the allocation for Atauro infrastructure should be explained more clearly.

  • The budget's projections for future spending are not sustainable. Petroleum Fund withdrawals and Infrastructure Fund spending in 2023-2025 are several times higher than current levels, although oil revenues will disappear during that time and domestic revenues will not increase nearly enough to cover the gap.

  • Spending through the Infrastructure Fund should be realistic and address people's needs. It will nearly quadruple from 2022 to 2023, and we have doubts that the government can needs-assess, plan, environmentally evaluate, design, manage and build so many new projects so quickly.

    • Although the Suai Supply Base only gets $1.5 million in 2022, it will get $747 million over the following four years.  The budget allocates $40 million in 2023-2026 to relocate communities for the second leg of the highway and in Beaçu, but no money to build these projects, as there is not yet a decision to build them. Parliament should defend and value people's lives over uncertain projects.

    • We need complete information about the impacts of borrowing. The amount of debt service to be paid in 2022 is different in budget books 1 and 4A, and better information and analysis of future obligations is essential, especially in light of the plan to contract $410 million in new loans during 2022.

  • The 'program-based budgeting' system doesn't yet meet its purpose. Some 'programs' are large and vague, with descriptions that don't match what they include. Budget documents no longer have information on expenditures by administrative classification (directorate), but this is essential for understanding, approving and implementing the budget.

  • Promote human resources in an equitable way. Allocations for health, education, water and agriculture continue to be much less than is needed, far below international standards. Prioritizing elite "Cafe" schools is misguided.

  • Subsidies should respond to needs. It is not just to allocate $25 million to subsidize food for public servants when hunger and malnutrition are widespread among the rural poor. The stated intention to support local farmers could be done more effectively.

  • Parliament should ask for clarification of incorrect information. The submission lists seven serious errors in the budget documents, and there are probably many more. The Ministry of Finance should provide corrected information.

  • The submission includes eight specific recommendations for Parliament and Government.

On 29 November, the Parliament Public Finance Committee (C) unanimously (with 3 abstentions) adopted a 91-page report  (Portuguese original) on the proposed budget. The Parliamentary Plenary began to debate the budget the next day, with a speech by the Prime Minister.

On 3 December, Parliament approved the budget in generality. Debate on the specifics began on 6 December. MPs have proposed more than 140 amendments, as follows: 1-79, 80-142, PN.

Parliament approved many of the amendments. Although they eliminated the $25 million subsidy for public servants, they added $38 million for the Ministry of Petroleum, mostly for TimorGAP. On 16 December, when they approved the final budget on a 44-21 vote (see also reports by Government and Tatoli), it had grown by more than 16%, to a total of $1.95 billion. Excess withdrawals (above ESI) have been increased from $488m to $757m to pay for the increased spending.

Immediate commentary from Parliament, the Prime Minister and the Ministry of Finance raised some concerns.

On 20 December, Parliament sent the budget to the President of the Republic to promulgate (or veto). Text of law approved by Parliament (10 MB, Port.).  On 3 January 2022, the President promulgated it as Law No. 1/2022 (Port.).

Diskusaun no aprovasaun iha Parlamentu Nasional

Iha loron 15 October, Governu haruka proposta OJE ba tinan 2022 ba Parlamentu Nasional, inklui ezbosu lei no livru neen. Proposta ida ne'e inklui:

  • Tokon $256 ba saláriu no vensimentu

  • Tokon $438 ba bens no servisu

  • Tokon $513 ba transferénsia públika

  • Tokon $  32 ba kapitál minor

  • Tokon $436 ba kapitál dezenvolvimentu (inklui tokon $51 empréstimu)

Proposta ida ne'e sei transfere biliaun $1.042 husi Fundu Petrolíferu, besik dala rua Rendimentu Sustentável Estimadu mak tokon $554. Hanesan esplika iha pájina 36 husi Livru 1, valor ba empréstimu husi Fundu Petrolíferu ba TimorGAP revaloriza husi tokon $701 ba $0 atu kalkula RSE, hanesan deskreve iha artigu ida husi Lusa.

Parlamentu organiza Semináriu Panorama Orsamentál 2022 iha Tibar iha loron 27-29 Outubru, no konvite La'o Hamutuk atu fó aprezentasaun ida.

Iha loron 15 November, La'o Hamutuk fó sai submisaun ida no fó testemuña iha audiénsia Komisaun C iha Parlamentu Nasional, hamutuk ho FONGTIL no Mata Dalan Institute. Ami sumariza ami nia submisaun iha komunikadu imprensa, blog, no aprezentasaun (mós PDF) ne'ebe ami fo ba jornalista sira, no hetan kobertura iha Tatoli, Lusa no GMN-TV, no sira seluk.

Pontu prinsipál sira mak:

  • Membru Parlamentu no públiku presiza informasaun loloos no kompletu atu foti desizaun.

    • Presiza promove transparénsia iha Fundu Petrolíferu no TimorGAP kona-ba revalorizasaun investimentu iha Greater Sunrise husi tokon $700 ba zero.

    • Projesaun ba futuru presiza halo ho sériu, kona-ba despeza rekorrente no reseita petróleu.

    • Presiza esplika ho klaru objetivu husi alokasaun ba infrastrutura iha Ataúro.

  • OJE fó projesaun despeza la sustentável ba tinan tuir mai.

  • Despeza Fundu Infrastrutura presiza realistíku no haktuir nesesidade povu, no imposivel atu jere aumenta dala haat iha 2023.

    • Presiza informasaun kompletu kona ba impaktu husi empréstimu.

  • Sistema orsamentu 'Bazeia ba Programa' seidauk la’o tuir objetivu no subar informasaun esensiál.

  • Promove rekursu umanu ho maneira ekitável. Tenke investe liu iha edukasaun, saúde, bee no agrikultura.

  • Subsídiu presiza responde ba nesesidade -- labele fó subsídiu ba funsionáriu públiku bainhira komunidade rurais barak enfrenta hamlaha.

  • Bele husu klarifikasaun ba informasaun sala, hanesan ezemplu hitu lista iha submisaun.

  • Rekomendasaun espesífiku ualu ba Parlamentu no Governu.

Iha loron 29 Novembru, Komisaun C kona-ba Finansas Publika iha Parlamentu Nasional aprova relatóriu ida (Portugés) ho pajina 91 kona-ba proposta OJE. Iha loron 20 Novembru, debate iha Plenária Parlamentár hahú ho diskursu husi Primeiru Ministru.

Iha loron 3 Dezembru, Parlamentu aprova OJE iha jeneralidade. Debate kona-ba espesialidade hahú iha loron 6 Dezembru. Deputadu/a sira proposta alterasaun ba plenária Parlamentár liu 140: 1-79, 80-142, PN.

Parlamentu Nasional halo alterasaun barak, liu-liu aumenta montante husi proposta inisiál husi Governu. Maske sira elimina tokon $25 ne’ebé atu subsidia funsionáriu públiku, sira mós aumenta tokon $38 ba Ministériu Petróleu no Minerais ida ne’ebé parte boot liu sei ba TimorGAP. Dia 16 Dezembru, bainhira PN aprova Orsamentu final ho votus 44-21 (Haree iha notísia Governu no Tatoli), Orsamentu ne’e sa’e ona husi 16%, ba total biliaun $1.95. Levantimentu liu RSE aumenta husi tokon $488 ba tokon $757 atu kobra despeza boot liu.

Komentáriu husi Parlamentu, Primeiru Ministru no Ministru Finansa hamosu preokupasaun balun.

Iha loron 20 Dezembru, Parlamentu haruka ona OJE ba Prezidente Republika atu promulga (ka veta). Testu lei ne'ebe Parlamentu aprova ona (10 MB, Port.)  Prezidente promulga OJE hanesan Lei Nu. 1/2022 iha 3 Janeiru 2022.

Graphics

The following are from the proposed budget, before Parliament revised it:

   

Grafiku sira

Tuir mai kona-ba proposta OJE, molok PN altera:

 

Documents (newest first)

Budget Framework Law:

Dokumentu (atuál liu mak uluk)

Lei Enkuadramentu Orsamental:

State Budget for fiscal year 2022:

For fiscal year 2021:

OJE ba tinan fiskal 2022:

Ba tinan fiskal 2021:

For fiscal year 2020:

Ba tinan fiskal 2020:

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: 
laohamutuk@gmail.com    Web: http://www.laohamutuk.org    Blog: laohamutuk.blogspot.com