Govt approves 2027 General State Budget draft with an amount of US$2,568 billion

DÍLI, 30 September 2026 (TATOLI) — The Council of Ministers has approved the draft General State Budget (GSB) for 2027, with a total consolidated amount of US$2,568,500,000.

The draft budget was presented by Finance Minister Santina José Rodrigues F. Viegas Cardoso.

The budget allocates US$ 2,487 million to the Central Government and US$ 56.1 million to the Oe-Cússe Ambeno Special Administrative Region (RAEOA). Social Security has a budget of US$ 186.55 million.

Under the motto “Strengthening Resilience through Transformation: Diversifying the Economy for a Sustainable Future”, the 2027 GSB continues the priorities set out in the Programme of the 9th Constitutional Government and in the 2011–2030 Strategic Development Plan.

The proposal combines the continuity of essential public services with investments and reforms aimed at strengthening productive capacity, creating jobs, improving the population’s living conditions and reducing the economy’s vulnerability to external shocks.

Among the key measures set out in the 2027 GSB, the following are particularly noteworthy:

• the development of the oil and mineral resources sectors, with an additional allocation of US$ 244.8 million for the policy priorities approved for 2027;
• the strengthening of education and health services, with allocations of US$ 194.2 million and US$ 182.6 million, respectively, to the Central Administration and the RAEOA, in accordance with the functional classification of expenditure;
• the continuity of the electricity supply, through a transfer of US$ 127.4 million to EDTL, E.P., which also supports the expansion of generation capacity at Oe-Cússe Ambeno and the solar power station at Ataúro;
• the continuation of support for National Liberation Fighters and vulnerable families, including US$ 156.2 million for the recognition and support of veterans, combatants, and martyrs, and US$ 11.7 million for mothers and children, primarily through the Bolsa da Mãe (Mother’s Allowance) programme;
• funding for school meals through local authorities, with an allocation of US$ 24.7 million, covering primary and pre-school education;
• strengthening fiscal equity and sub-national governance, with an additional allocation of US$ 17.3 million, aimed at supporting decentralisation and the delivery of public services across the country;
• funding for election-related needs and commitments relating to ASEAN, with an additional allocation of US$ 27.5 million;
• strengthening public order and security, with an additional allocation of US$ 13.6 million;
• promoting economic diversification through initial funding of US$ 8.8 million for niche tourism priorities and US$ 6 million for fisheries, supporting the preparation of interventions and capacity building in these sectors;
• strengthening the domestic revenue system with an additional allocation of US$ 5 million, as part of measures aimed at improving revenue mobilisation;
• and the reduction of inefficiencies in public spending, with projected savings of US$ 53.6 million across 62 organisations, as well as the reorientation of the Infrastructure Fund, with projected savings of US$ 51.6 million in 2027.

The preparation of the 2027 GSB also builds on stronger medium-term planning, with estimates for 2027 to 2031 that identify the costs of continuing existing policies and services and allow the Government’s new priorities to be analysed separately.

This approach aims to improve resource allocation, increase expenditure predictability, and strengthen results assessment, while maintaining the annual nature of budgetary authorisation, in accordance with Law No. 3/2025 of April 23rd, on the Framework for the General State Budget and Public Financial Management.

TATOLI