DILI, 06 July 2026 (TATOLI) — The Government of Timor-Leste has launched a new political review process to prepare the 2027 State Budget, marking a shift toward a policy-driven approach aimed at aligning public spending with the country’s strategic priorities.
The first meeting of the newly established Political Review Committee was held on July 4 at the Ministry of Finance in Dili and chaired by Prime Minister Kay Rala Xanana Gusmão.
The committee replaces the former Budget Review Committee following a government resolution approved by the Council of Ministers on June 25. Under the new framework, the government will determine its political priorities before ministries and public institutions prepare their annual plans and budget proposals.
In his remarks, Gusmão said the reform reverses the traditional budget preparation process by placing policy priorities at the centre of fiscal planning. Ministries and other state institutions will now develop budget proposals based on priorities defined by the government rather than submitting spending requests first.
Before launching the new phase, the government held budget planning seminars with ministries and municipal authorities to identify development priorities and funding requirements.
During the meeting, the Ministry of Finance, Santina José Rodrigues F. Viegas Cardoso, presented the new preparation framework for the 2027 State Budget, including an assessment of the government’s policy priorities, the medium-term fiscal framework, implementation of ongoing programmes and the development of annual action plans. The presentation was delivered by the Directorate-General for Budget Planning and the Petroleum Fund Policy and Management Unit.
The government said the 2027 budget is intended to mark a transition toward a public policy-based budgeting model, in which spending decisions are guided by strategic priorities, the state’s fiscal capacity and their expected medium-term impact.
As part of the review process, the committee received 28 policy priority options grouped into three broad categories: measures to create fiscal space, expenditure pressures arising from central government priorities, and investment opportunities in sectors including health, education, agriculture and other productive industries.
The committee will examine each proposal before the government finalises the draft 2027 State Budget.
Gusmão also urged public officials to maintain responsible, transparent and efficient management of public resources, stressing that state funds should be directed to well-planned programmes capable of delivering measurable results.
The meeting was attended by Deputy Prime Minister Francisco Kalbuadi Lay, Deputy Prime Minister Mariano Assanami Sabino, Finance Minister Santina José Rodrigues F. Viegas Cardoso, Public Works Minister Samuel Marçal, Minister of Planning and Strategic Investment Gastão Francisco de Sousa, Vice Finance Minister Regina de Jesus, Secretary of State for Equality Elvina de Sousa Carvalho, as well as representatives of the Civil Service Commission and autonomous agencies.
The Political Review Committee is scheduled to continue its deliberations on July 6 and 7 as it finalises the priorities that will underpin the government’s proposed 2027 State Budget.
TATOLI
