Govt approves amendments to public financial management rules

DÍLI, 05 July 2026 (TATOLI) — The Government approve on Wednesday the first amendment to the decree-law governing the implementation of the General State Budget, introducing greater flexibility in budget execution to speed up public investment projects and strengthen public financial management.

The amendment, proposed by Vice-Minister of Finance Regina de Jesus, revises Decree-Law No. 42/2025 of December 15, which implements Law No. 3/2025 of April 23 on the Framework for the General State Budget and Public Financial Management.

“The amendment introduces greater flexibility in the execution of the General State Budget, allowing funds earmarked for the development capital of public administrative sector services and entities to be released up to the full amount of the original budget allocation by the end of the first half of each year,” said in a statement.

This measure aims to ensure faster, more efficient implementation of public investment projects, reduce administrative constraints, and facilitate the timely achievement of government priorities.

The decree-law also brings the regulatory framework into line with the amendments introduced by Law No. 8/2026 of June 8th, which increased the flexibility of budgetary management. In this context, the law now provides for the possibility of making budgetary adjustments and transferring funds between the various programmes of the Infrastructure Fund, in accordance with the provisions of the Framework Law on the General State Budget and Public Financial Management.

With this amendment of the regulatory framework, the Government is strengthening public financial management mechanisms, promoting more efficient use of public resources, and ensuring greater capacity for the physical and financial implementation of strategic development capital projects, in accordance with the current legal framework.

TATOLI