Contents of this page

• Background
• Government's  proposal
• Documents
• Analysis
• Links

Konteúdu pájina ida ne’e

• Antesedente
• Proposta Governu
• Dokumentu
• Analiza
• Ligasaun

Background

Timor-Leste's fiscal year is the calendar year, and the 2012 State Budget has been in effect since January. However, according to Articles 34-35 of the Law on Budget and Financial Management, the Government can ask Parliament to make adjustments in the middle of the year, a process which is currently underway.

Following the 7 July 2012 Parliamentary Election (list of sitting Parliamentarians), Timor-Leste's leaders formed the republic's Fifth Constitutional Government, headed by incumbent Prime Minister Xanana Gusmão and with Emilia Pires continuing as Minister of Finance, but with some structural changes (list of officials).  A few weeks later, the Council of Ministers adopted a five-year Program, which the Prime Minister presented to Parliament on 12 September.  Parliament endorsed the program after two days of discussion, and the Democratic Party (part of the ruling coalition) expressed some thoughts (Tetum).

Also on 14 September, the Council of Ministers approved a mid-year budget rectification proposal  (full text in Portuguese) and sent it to Parliament as PPL 1/III for enactment. Timor-Leste's third elected Parliament opened its legislative session the following day, and Economics Committee C went to Baucau the following Monday to discuss the proposed budget law. Parliamentary committees continue to hear from ministers and prepare reports about parts of the budget.

The debate in the Parliamentary Plenary began on 11 October, with a presentation by the Prime Minister, followed by speeches from each political party (FRETILIN and Partidu Demokratiku speeches in Tetum) and a reading of the report from Committee C (also Portuguese). The discussion will continue until 23 October.

On Friday, 12 October, the Parliament approved the budget in generality, and discussion on each item will continue the following week. The vote was 40 in favor, 1 (Antonino Bianco) against, and 23 (FRETILIN) abstentions. Prior to the vote, FRETILIN (Tetum) and other parties made closing statements.

Following three days of debate on the specific budget items, Parliament approved the Budget Rectification on the night of 17 October, with 40 in favor and all 25 Fretilin MPs voting against. It was promulgated by President Taur Matan Ruak and published in a special edition of the Jornal da Republica as Law no. 8/2012 of 30 October. The Ministry of Finance published the Budget Book in English in late December, releasing final versions in mid January in English, Tetum and Portuguese.

The Government normally presents the annual budget for the following year to Parliament by 15 October. However, because a new Government was formed this year, that date does not apply for the 2013 budget. We have heard that the Government plans to submit it to Parliament in December, with enactment in January or February 2013. In that case, state operations during the first months of 2013 will be financed under the "duo-decimal regime" described in Article 31 of the Budget and Financial Management Law.

Antesedente

Timor-Leste nia tinan fiskál tuir kalendáriu tinan nian, no Orsamentu Estadu 2012 ne’ebé la’o ona dezde Janeiru. Maske nune’e, tuir Lei Orçamento e Gestão Financeira 2009, Governu bele husu ba Parlamentu atu halo ajustamentu iha tinan klaran, prosesu ida ne’ebé daudauk ne’e la’o hela.

Tuir Eleisaun Parlamentár 7 Jullu 2012 (lista membru Parlamentu atual), lideransa Timor-Leste forma Kintu Governu Konstitusionál, lidera hosi Primeiru Ministru iha Governu anterior Xanana Gusmão no Emilia Pires kontinua nudár Ministra Finansa, maibé iha mudansa estrutura balu (lista ofisiais). Semana ida hafoin, Konsellu Ministru adopta Programa tinan lima nian, ne’ebé Primeiru Ministru aprezenta ba Parlamentu iha 12 Setembru. Parlamentu aprova Programa hafoin diskusaun durante loron rua, no Partidu Demokrátiku (parte hosi koligasaun ne’ebé ukun) hato’o hanoin balun.

No mós iha 14 Setembru, Konsellu Ministru aprova proposta orsamentu retifikativu ba tinan klaran (textu tomak iha Portugés) no haruka ida ne’e ba Parlamentu nudár PPL 1/III ba aprovasaun. Timor-Leste nia terseira lejizlatura loke nia sesaun lejizlativa nian hafoin loron ne’ebá, no Komisaun C ba asuntu ekonómiku ba Baucau iha Segunda-Feira tuir mai atu diskute proposta lei orsamentu nian. Komisaun sira rona nafatin husi Ministru sira kona ba sira-nia orsamentu.

Debates Parlamentar hahu iha 11 Outubru, ho aprezentasaun husi Primeriu Ministru, tuir mai ho palestra husi kada Partidu Politiku (FRETILIN no Partidu Demokratiku) no le'e relatoriu Komisaun C (iha Port. ka Ingles). Diskusaun sei kontinua to'o 23 Outubru.

Iha loron sesta, 12 Outubru, Parlamentu aprova orsamentu retifikativu iha generalidade, no diskusaun kona-ba linha ida-ida atu kontinua semana tuir mai. Votasaun 40 favor, 1 kontra (Antonino Bianco), no 23 abstensaun (FRETILIN). Molok votasaun FRETILIN no partidu sira seluk halo deklarasaun ikus.

Hafoin debate loron tolu kona ba rubrika spesifiku, Parlamentu Nasional aprova Orsamentu Retifikativu iha kalan 17 Outubru, ho votasaun 40 favor no 25 (FRETILIN hotu) kontra. Prezidente Taur Matan Ruak promulga hanesan Lei No. 8/2012 de 30 Outubru, no Ministeriu Finansas publika Livru 1 final iha Janeiru.

Governu bai-bain aprezenta orsamentu anual ba tinan tuir mai ba Parlamentu iha 15 Outubru. Maske nune'e, tanba Governu foun foin mak forma iha tinan ida ne'e, data ne'e la aplika ba orsamentu 2013. Ami rona katak Governu iha planu atu hatama orsamentu ne'e iha Dezembru, no envigora iha Janeiru ka Fevereiru. Iha kazu ida ne'e, operasaun estadu durante fulan primeiru 2013 sei finansia tuir "rejimu duo-decimal" ne'ebe deskreve iha Artigu 31 Lei Orsamentu no Jestaun Finanseiru (Port.).

Government's budget rectification proposal

The proposed revision does not change the total amount of the 2012 State Budget, which remains at $1,674 million dollars. However, it adds $55.4 million in new expenditures, which are financed by in-effect borrowing $50 million from the $164 million allocated to the Tasi Mane project in the 2012 budget's Infrastructure Fund "on condition of being reinstated in 2013." Timor-Leste's State Budget next year will probably again be one of the fastest-growing on the planet, a trend which La'o Hamutuk has already shown leads to disaster in about 12 years (click on graph at right to see it larger).

The biggest new expenditures will increase cash payments to veterans and old people (rather than investing to implement the Strategic Development Plan), and more details are given in the budget documents below:

• $26.9 million more for veterans' pensions, adding to $80.4 million already appropriated, of which $73.8 million had been spent by 18 September;

• $ 7.1 million more for old-age pensions, adding to $35.9 million already appropriated for Social Security, of which $16.7 million had been spent by 18 September;

• $ 6.1 million more for the Contingency Reserve, adding to $21.2 already appropriated, of which $1.6 million had been spent by 18 September; [This is confusing; the transparency portal shows only $2.6 million remaining in the Contingency Reserve, but does not reveal what happened to most of the original appropriation.]

• $ 6.4 million more in three items for the military and police, adding to $64.1 million already appropriated, of which $36.9 million had been spent by 18 September;

• $ 9.0 million more in seven other items for education, health, water transport, civil society and other functions.

The proposed budget rectification also shifts funds between  ministries, including those where were terminated (Ministry of Economy and Development and State Secretariat for Energy Policy) and new ones created by dividing previous ministries.

As Parliament prepared to debate this rectification on 10 October, La'o Hamutuk distributed our analysis to every member.  Our main points are:

• This adjustment will add weight to the 2013 budget.
• The actual adjustment is greater than $54 million.
• The budget still does not respond to gender.
• Transferring money justifies doubts about the Tasi Mane project.
• We shouldn’t put everyday activities on the “urgent” path.
• Parliament should ask for more information about the Contingency Reserve
• Money for veterans: their right or keeping an election promise?

Proposta Governu ba retifikasaun orsamentál

Proposta revizaun nian la muda montante total hosi Orsamentu Estadu 2012 nian, ne’ebé nafatin iha biliaun $1.674. Maske nune’e, orsamentu ne’e aumenta tokon $55.4 ba despeza foun, ne’ebé empresta hosi osan ne’ebé aloka tiha ona ba projetu Tasi Mane iha Fundu Infrastrutura iha Orsamentu Estadu 2012 “ho kondisaun katak sei troka fali iha 2013.” Timor-Leste nia Orsamentu Estadu iha tinan oin provavelmente sei sai tan orsamentu ida ne’ebé sa’e maka’as liu iha planeta ida ne’e, lala’ok ida ne’ebé La’o Hamutuk hatudu tiha ona, ne’ebé sei lori dezastre maizumenus tinan 12 oin mai (klik ba gráfiku iha liman karuk atu hare ho boot).

Despeza boot foun sei aumenta pagamentu osan ba veteranu sira no idozu sira (duke investe atu implementa Planu Estratéjiku Dezenvolvimentu), no detallu liu hatudu iha dokumentu orsamentál tuir mai:

• Tokon $26.9 ba tan pensaun veteranu, hodi aumenta ba tokon $80.4 ne’ebé iha ona dotasaun, ne’ebé to’o iha 18 Setembru, gasta ona tokon $73.8;

• Tokon $7.1 ba tan pensaun idozu, hodi aumenta ba tokon $35.9 ne’ebé iha ona dotasaun ba Seguransa Sosiál, ne’ebé to’o iha 18 Setembru gasta ona tokon $16.7;

• Tokon $6.1 ba tan Rezerva Kontinjénsia nian, hodi aumenta ba tokon $21.2 ne’ebé hosi montante ne’e, to’o iha 18 Setembru gasta ona tokon $1.6; [Ida ne’e hamosu konfuzaun, portal transparénsia hatudu iha de’it tokon $2.6 mak nafatin iha Rezerva Kontinjénsia, maibé la esplika saida mak akontese ba maioria dotasaun original.]

• Tokon $6.4 ba tan iha dotasaun tolu ba militár no polísia, aumenta ba tokon $64.1 ne’ebé iha ona dotasaun, hosi ne’e to’o iha 18 Setembru, gasta ona tokon $36.9;

• Tokon $9.0 ba tan iha dotasaun hitu ba edukasaun, saude, transporte maritima, sosiedade sivil no funsaun seluk.

Proposta retifikasaun orsamentál mós muda fundus entre ministériu sira, inklui ministériu sira ne’ebé taka tiha (Ministériu Ekonomia no Dezenvolvimentu no Sekretáriadu Estadu Polítika Enerjetika) no ministériu foun sira ne’ebé foin harii husi ministériu tuan sira ne’ebé fahe tiha ba. Ami sei hakerek liu tan kona-ba ida ne’e bainhira ami halo ona analiza ba ne’e.

Bainhira Parlamentu hahu debate kona-ba orsamentu retifikativu iha loron 10 Outubru, La'o Hamutuk fahe ami nia analiza ba Deputadu/a sira. Asuntu prinsipal tuir mai:

• Ajustamentu tinan ne’e husik tusan ba 2013.
• Retifikasaun loloos liu montante tokon $54.
• Orsamentu nafatin la responde ba jéneru.
• Transferénsia osan justifika duvida ba projetu Tasi Mane.
• Ita labele la’o hela de’it iha dalan “urjente.”
• Parlamentu tenke husu informasaun tan kona-ba Fundu Kontinjénsia.
• Osan ba veteranu: direitu ka kumpre promesa eleisaun?

Changes in Proposed 2012 Mid-year Budget Adjustment

La'o Hamutuk translated and adapted the following table from the Ministry of Finance's Budget Book. Click here to download the table as a PDF file for printing. Numbers in (parentheses) are reduced appropriations; others are increases, in thousands of U.S. dollars.

In mid-2013, the Ministry of Finance presented audited reports on the 2012 General State Accounts (Consolidated Fund, Infrastructure Fund and Human Capital Development Fund Port.) to the Court of Appeals (acting as the interim High Tax and Audit Court) and to Parliament, and the Court gave its analysis and opinion (Port.) to Parliament in late November. After a couple of days of hearings in early December, Parliament held a plenary debate (rules in Portuguese, notes in Tetum) on these accounts with the Prime Minister on 7 January 2014, although the Finance Minister did not attend. At 7:30 that evening, Parliament voted to accept the accounts and the Court's opinion with 49 votes in favor, 0 against, and 11 abstentions.

Documents

Many more documents are linked to from our page on the original 2012 State Budget; the following list includes only those most relevant to this mid-year budget rectification.

• Court's Relatorio no Paracer 2012 General State Accounts (Portuguese) (27 Nov. 2013)

• 2012 Financial Statements from Ministry of Finance for Consolidated Fund, Infrastructure Fund and Human Capital Development Fund (Port.) (June 2013)

• Final Ministry of Finance Budget Book for OR12 (also Tetum or Portuguese) (16 January 2013)

• Budget Rectification Law as enacted (Portuguese)  (30 October 2012)

• Proposed Budget Rectification Law (also Portuguese) and explanatory memorandum (14 September 2012)

• Proposed Budget Rectification Law with all annexes (Portuguese)  (14 September 2012)

• Ministry of Finance draft Budget Book on OR 12 (Tetum), with description, analysis and list of budget changes (dated 7 September, scanned 21 September)

• Program of the V Constitutional Government 2012-2017 (26 August 2012)

• List of members of Parliament, with committee assignments and telephone numbers

• List of members of Government, with phone numbers and email addresses

• 2012 General State Budget (approved January 2012)

  • Book 1 Budget Overview (including budget law). English (2MB) or Portuguese (3 MB)
  • Book 2 Annual Action Plans. Portuguese (5 MB)
  • Book 3 Districts. Tetum (3 MB)
  • Book 4A Expenditure line items part 1. Portuguese/English
  • Book 4B Expenditure line items part 2. Portuguese/English
  • Book 5 Development Partners. English or Portuguese
  • Book 6 Special Funds. Portuguese

• Ministry of Finance transparency portal which includes updated budget execution information and some procurement and other data

• Budget Execution Report, January-December 2011 (3MB)
  Budget Execution Report, January-March 2012 (3MB)  (Infrastructure Fund alone is smaller)
  Budget Execution Report January-June 2012 (2.5 MB)
  Budget Execution Report January-Sept 2012 (2.5 MB), (Jan 2013)

Dokumentu

Dokumentu barak mak liga ba ami nia pájina Orsamentu Estadu orijinál 2012; lista tuir mai ne’e inklui de’it sira ne’ebé relevante liu ba retifikasaun orsamentu tinan klaran ida ne’e.

• Deklarasaun Finansial tinan 2012 husi Ministeriu Financas ba Fundu Konsolidadu, Fundu Infraestrutura, no Fundu Dezenvolvimentu Kapital Umanu (Port.) (Junu 2013)

• Final Livru Orsamental husi Ministeriu Finansas ba OR12  (mos Ingles ka Portuges) (16 Janeiru 2013)

• Final Lei Retifikasaun Orsamentál (Portugues) (30 Outubru 2012)

• Proposta Lei Retifikasaun Orsamentál (Portugues) no esplikasaun motivu nian (14 Setembru 2012)

• Proposta Lei Retifikasaun Orsamental ho aneksu tomak (Portuges) (14 Setembru 2012)

• Livru Orsamentu Estadu Retifikativu 2012 husi MoF (ho deskrisaun, analize no lista mudansa) (7 Set 2012)

• Programa Kintu Governu Konstitusionál 2012-2017 (26 Agostu 2012)

• Lista membru Parlamentu, ho nia membru komisaun sira no sira nia númeru telemovel

• Lista membru Governu, ho númeru telemovel no e-mail

• Relatoriu Ezekusaun Orsamentu Janeiru-Marsu 2012, Junu 2012

• Orsamentu Jerál Estadu 2012 (aprova iha Janeiru 2012)
  • Livru 1 Sumariu no Panorama Orsamentu (inklui Lei Orsamentu). Ingles (2MB)  ka  Portuges (3 MB)
  • Livru 2 Planu Asaun Anual. Portuges (5 MB)
  • Livru 3 Distritu. Tetum (3 MB)
  • Livru 4A Rubrika linha despeza parte 1. Portuges/Ingles
  • Livru 4B Rubrika linha despeza parte 2. Portuges/Ingles
  • Livru 5 Parseiru Dezenvolvimentu. Ingles  ka  Portuges
  • Livru 6 Fundus Spesial. Portuges

• Portal transparénsia Ministériu Finansa nian ne’ebé inklui atualizasaun informasaun kona-ba ezekusaun orsamentu no dadus balu kona-ba aprovizionamentu no dadus sira seluk.

• Relatóriu ezekusaun orsamentál, Jan-Dez 2011 (3MB)

• Relatóriu ezekusaun orsamentál, Jan-Mar 2012 (3MB)  (Infrastructure Fund mesak mak ki'ik liu)
  Relatóriu ezekusaun orsamentál Jan-Jun 2012 (2.5 MB)
  Relatóriu ezekusaun orsamentál Jan-Set 2012 (2.5 MB)

• Declarations from FRETILIN and Partidu Demokratiku (Tetum)  (11 Oct 2012)

• Prime Minister's speech presenting the Rectification Budget to Parliament (11 Oct 2012)

• La'o Hamutuk submission to Parliament about this Budget Rectification (10 Oct 2012)

• Report and Opinion from Parliament Committee C (9 Oct 2012)

• Prime Minister's speech presenting the Government's five-year program to Parliament (also Tetum or Portuguese) (12 Sept 2012)

• Civil society observations for the Development Partners Meeting, May 2012

• Citizen's Guide to the 2012 State Budget (Ministry of Finance, March 2012)

• La'o Hamutuk letter to President Ramos-Horta urging careful evaluation before promulgating the original 2012 budget (Dec 2011)

• La'o Hamutuk Submission to Parliament Committee C on the proposed original 2012 budget (Oct 2011)

• Deklarasaun husi  FRETILIN (11 Out 2012)

• Deklarasaun husi Partidu Demokratiku (11 Out 2012)

• Diskursu Primeiru-Ministru aprezenta proposta O.R. ba P.N. (11 Out 2012)

• Submisaun husi La’o Hamutuk ba Parlamentu kona-ba Orsamentu Retifikativu (10 Out 2012)  [mos iha LH nia blog]

• Relatorio e Parecer husi Komisaun C (Portuges) (9 Out 2012)

• Palestra Primeiru Ministru bainhira aprezenta programa tinan lima Governu nian ba Parlamentu (mós Portuges) (12 Set 2012)

• Observasaun Sosiedade Sivíl ba Enkontru Parseiru Dezenvolvimentu, Maiu 2012

• Mata Dalan Sidadania ba Orsamentu Estadu 2012 (Ministériu Finansa, Marsu 2012)

• La’o Hamutuk nia karta ba Prezidente Ramos-Horta husu evaluasaun ho kuidadu molok promulga orsamentu original 2012  (Dez 2011)

• La’o Hamutuk nia Submisaun ba Komisaun C Parlamentu Nasionál kona-ba proposta orsamentu orijinál 2012 (Out 2011)

• Strategic Development Plan 2011-2020

• General State Budget for 2012

• Heavy oil electricity project

• Tasi Mane petroleum infrastructure project

• Petroleum Fund

• Taking Timor-Leste into debt

• Planu Estratéjiku Dezenvolvimentu 2011-2020

• Orsamentu Jeral Estadu 2012

• Projetu eletrisidade óleu pezadu

• Projetu Tasi Mane infrastrutura petrolíferu

• Fundu Petróleu

• Timor-Leste tama ba deve