DILI, 21 November 2025 (TATOLI) – The National Parliament on Friday approved the General State Budget (OGE) for 2026, a US$2.291 billion spending plan aimed at strengthening economic transformation, regional integration and inclusive development in Timor-Leste. The bill was approved with 42 votes in favour, none against and 23 abstentions.
Of the US$2.291 billion budget, about US$477 million is allocated to salaries and wages, US$448 million to operational goods and services, more than US$820 million to public transfers, US$32.5 million to minor capital, and over US$436 million to development capital.
The 2026 budget is built around the motto “Investing in National Transformation, Regional Integration and Inclusive Development.” It maintains the long-term vision set out in the 2011–2030 Strategic Development Plan and the Program of the 9th Constitutional Government. It allocates resources to social capital, strategic infrastructure, economic diversification and institutional strengthening, which the Government identifies as key pillars for sustaining growth and improving citizens’ access to public services.
Prime Minister Kay Rala Xanana Gusmão highlighted the positive tone of the debate in his closing remarks. He said the Government “humbly” welcomes the “constructive criticism” of members of the National Parliament, noting that it helps the Executive “serve better, work responsibly, efficiently and effectively, without unnecessary expenditure and without nepotism or factionalism.”
He also paid “tribute to all those who 50 years ago showed the world the people’s dream of independence,” praising their “courage, determination, and commitment to this beloved nation in unilaterally proclaiming the independence of Timor-Leste.”
During the opening of the budget debate earlier this month, the Prime Minister stressed that the OGE “is more than a financial plan; it is our pact with the Timorese people and our commitment to the region we are joining, as equals.”
He added that 2026 will be “the year of transforming the economy, boosting employment, productive investment and social inclusion.”
The budget outlines increased investment in social capital, with a focus on strengthening health, education and social protection systems. It expands funding for essential infrastructure, including roads, electrification, drinking water, telecommunications and strategic equipment. It also includes measures to support private-sector growth, stimulate productive investment and create decent jobs for young people.
The plan advances a set of structural reforms such as the creation of the National Development Bank of Timor-Leste (BDNTL), the modernisation of public financial management and the digitisation of services. It also covers the implementation of digital identification systems, preparations for the introduction of VAT in 2027 and the strengthening of institutions linked to Timor-Leste’s full ASEAN membership.
Macroeconomic projections forecast non-oil GDP growth of 4.5 percent in both 2025 and 2026, driven by consumption, public investment and a more dynamic private sector.
The budget’s approval follows its formal submission to Parliament on October 1, a plenary presentation on November 5 and its general approval in the first vote on November 7. After detailed analysis and voting article by article, MPs concluded the process with Friday’s final overall vote. The final version of the budget will now be sent to the President of the Republic for promulgation as required by the Constitution of the Democratic Republic of Timor-Leste.
TATOLI
