Parliament approves 2027 General State Budget proposal in general terms
DÍLI, 11 November 2026 (TATOLI) – Timor-Leste’s National Parliament has approved the Government’s proposed US$2.5685 billion General State Budget (GSB) for 2027 in its first reading, with 41 votes in favour, none against and 23 abstentions.
The approval on Wednesday followed three days of parliamentary debate, from November 9 to 11, during which lawmakers examined the Government’s proposed spending priorities, economic policies and development plans for the coming year.
The budget, presented by the 9th Constitutional Government under the theme “Strengthening Resilience through Transformation: Diversifying the Economy for a Sustainable Future”, places economic diversification, productive investment, job creation and improved public service delivery at the centre of its development agenda.
It also aims to strengthen public financial sustainability and reduce the country’s reliance on petroleum revenues, in line with the Government Programme and Timor-Leste’s Strategic Development Plan 2011–2030.
Opening the parliamentary debate on November 9, Prime Minister Kay Rala Xanana Gusmão stressed the importance of managing public finances responsibly while strengthening domestic productive capacity and gradually reducing dependence on oil and gas income.
He said the proposed budget had been developed through a policy-driven approach covering a five-year period, linking financial allocations to government programmes and expected outcomes. This approach, he argued, would allow for closer monitoring and more effective assessment of how public resources are used.
The proposal allocates US$535.3 million for public investment, including US$505.8 million for development capital projects. Priority sectors include infrastructure, agriculture, tourism, healthcare, education, social protection and local development.
Alongside development spending, the Government plans to introduce measures to improve public expenditure efficiency, strengthen domestic revenue collection and reform public financial management. The proposal also seeks to encourage private-sector development as part of broader efforts to expand the economy beyond the petroleum sector.
The 2027 budget also makes provisions for major national commitments, including the presidential election, the possible organisation of municipal elections and initial preparations for Timor-Leste’s ASEAN Chairmanship in 2029.
The draft budget law was submitted to the National Parliament on October 1, 2026, and subsequently examined by the relevant parliamentary committees before entering the general debate stage.
Following its approval in general terms, lawmakers are scheduled to begin detailed discussions and voting on the proposed budget on November 24. The deadline for submitting amendments is 5 p.m. on November 13.
Once the detailed examination is completed, Parliament will hold a final overall vote. If approved, the budget law will be forwarded to the President of the Republic for promulgation.
TATOLI
