DILI, 22 August 2023 (TATOLI) – Prime Minister Kay Rala Xanana Gusmão highlighted the focus of rectification budget on five important aspects – Revitalization of the IX Government Structure, Reduction of Expenditure in State Budge, Inflation Reduction, Amendment of General State Budget Framework and the Alteration of the Tax Law.
“The revitalization of the new government structure includes the creation of the Ministry of Tourism and Environment, the Ministry of Rural Development and Community Housing, the Ministry of Youth, Sports, Art, and Culture, and the Ministry of Planning and Strategic Investment,” Gusmão made the comments during the presentation of the rectification budget at the National Parliament, on Tuesday.
Gusmão said that the plan to reduce expenditure in the State Budget aims to reduce the withdrawal of money from the Petroleum Fund.
With regard to reducing inflation, he said that the inflation tax is very high in Timor-Leste, putting many Timorese in difficult living conditions, especially disadvantaged families: “The IX Government has committed to reducing inflationary pressure. Therefore, in this rectification budget, it is proposed to reduce the selective tax on sugar.”
He emphasized the importance of the intention to amend Law 2/2022 on the Framework of the General State Budget, focusing on five important categories – Wages and Salaries, Goods and Services, Public Transfers, Minor Capital, and Development Capital.
“Therefore, in order to guarantee the stability of the General State Budget, we are going to eliminate the Law of Grand Options Plan and create an Annual Strategic Investment Plan with a multi-annual vision of the Budget that is in line with the best international practices,” said Gusmão.
Prime Minister also stressed the government’s intention to amend Law no. 8/2008, of June 30, on the Tax Law, in order to guarantee legal certainty and fiscal stability for foreign investment in Timor-Leste.
On tuesday (22/08), the National Parliament approved the US$1.7 billion Rectification Budget with 41 votes in favor, no against, and 23 abstentions. Meanwhile, the budget is expected to be approved in its final global on thursday (24/08).
Journalist: Filomeno Martins
Editor: Nelia Borges
