113.4 million is expected for short-term measures for economic recovery

113.4 million is expected for  short-term measures for economic recovery

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DÍLI, August 31, 2020 (TATOLI) – Economic recovery plans make up a important part of the wide-ranging package of measures that economic policy-makers worldwide have taken in response to the financial and economic crisis.

In Timor-Leste, the Government has begun to implement a first phase of the short term economic recovery measure, from July to December, in order to respond to the immediate economic crisis caused by the COVID-19.

The stem measure is formed by the Commission for the preparation of economic recovery plan, whose mandate has ended in August 18 this year after 60 days of work.

The result of the measure is to mitigate the economic and social impact in the short term with the used of US$ 113.4 million budget as a view to preserving the jobs existing before the crisis, recovering the income of families over the improvement of the direct market and companies also to normalizing the economic activities.

According to a statement to which Tatoli had access, the four measures focus on the essential recovery of goods and production, which will allow the normalization of business activities and will incidentally support more tourism and the informally depositors.

The first measure consists of the preparation of the “basic staple food” for families, which will be implemented on November and December, with a total cost of US $ 71.5 million bill, aims to support the basic needs for the households specially for the most vulnerable families and support local producers and traders.

The Support will be provided based on the number of the family, the basic staple will contain foods and hygiene products, with preference being given to national products in the local market.

The second and third measures are addressed to entities, employers and individual entrepreneurs. One consists of the recovery subsidy, which results between August and December, with a total of 35 million. The other is the contributory waiver, carried out between July and December, in the amount of 3.6 million. Both aim to resume economic activities and imply mandatory non-dismissal of workers and registration with Social Security.

The last measure concerns the special support for informal workers, being implemented between October and December, with a total of 3.3 million, which also implies the registration with Social Security and the obligation of maintaining the contributions for the six hours.

Journalist: Antónia Gusmão

Editor: Julia Chatarina/Nick Kettle


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