Dili, 20 december, 2021 (TATOLI)- World Bank Timor-Leste (WBTL), suggested the Government of Timor-Leste implement the crucial measures identified by the World Bank to improve the economic growth of Timor-Leste.
The Resident Representative of World Bank in Timor-Leste, Bernard Harborne said Timor-Leste has unstable economic growth, following the report of WB released in May showed Timor-Leste’s Economy growth recorded 1.8%. The second-period report on Timor-Leste’s economy is declined to 1.6% in 2021.
“Therefore WB has identified several measures that need to be implemented by the Government to improve the economic growth of the country ” The Resident Representative of World Bank Timor-Leste, Bernard Harborne informed the media in Atauro Meeting room, in Business Palm Center, Hudi Laran, 16 december, this thursday.
The three points to be considered by Timor-Leste’s government to improve the country economic growth:
- It is required urgently needed for economic structural reforms. The aim is to increase domestic revenue. It is important to improve the quality of public expenditure.
- It is needed to improve the customs system and add up tax mobility revenue for import and export. It prioritizes for collect revenue on the tax of properties, cigarettes, alcohol, and even soft drink.
- The country’s expenditure must focus on investing in potential sectors that can be contributed to country revenue.
“Timor-Leste government must comply with those three points to boost country’s economic growth to 2.4% in 2022,” Said Harborne.
Following the report from the WB, Bernard Harborne explained that the dropped was caused by the 2017 political deadlock adding that the condition is continued to be the same as the country was hit by the COVID-19 pandemic and the 4 flush flood recently.
World Bank Senior Economist, Alief Aulia Rezza said Timor-Leste’s government is needed to improve country expenditure, adding that the state budget must be allocated to the target ministries, which can be contributed to country revenue.
Mr. Rezza added Timor-Leste Public Expenditure Review is to support the Government of Timor-Leste in identifying key constraints to efficient and effective public spending and offering ways to improve the spending quality to achieve the country’s development objective.
“The execution of state budget must be avoided from the programs are not giving revenue to the country. The 2022 budget must be investing to Agriculture, Tourism, Commerce, and Industry and among others” said Rezza.
The Key Findings on economy tax mobility revenue identified by World Bank:
- Accelerating and sustaining economic growth is key to reducing poverty and raising living standards in Timor-Leste.
- High public expenditure levels and limited domestic revenues bring a large budget deficit. It is threaten fiscal sustainability and endangers macroeconomic stability.
- Domestic revenues are very low by international standards and need to be improved.
World Bank is recommended to the government not depend on petroleum funds. Thus, the government have to increase the non-petroleum receipt
It is recalled that non-oil GDP contracted by 8.6 percent in 2020 and the government collected 11.3% less domestic revenue during the first half of 2021.
Journalist: José Belarmino De Sá
Editor: Nelia B
