DILI, 02 June 2026 (TATOLI) — The National Parliament on Tuesday approved the revised 2026 General State Budget (OGE), with 42 votes in favor, none against, and 23 abstentions.
The budget revision is aimed at addressing the impact of the current international environment, marked by geopolitical instability and volatility in global energy markets.
The measures are designed to strengthen national energy security, stabilize fuel prices, and ensure the uninterrupted delivery of essential public services.
A key component of the revised budget is the establishment of a Strategic National Fuel Reserve valued at $174.3 million. The reserve is expected to secure approximately seven months of fuel supply required for electricity generation nationwide.
The amendment also allocates $42 million for a fuel subsidy program intended to cushion households and businesses from rising international fuel prices.
Additional measures include increasing rice stocks managed by the National Logistics Center, providing funding for the recruitment of 400 cadets into the National Police of Timor-Leste (PNTL), covering expenses related to Timor-Leste’s presidency of the Community of Portuguese Language Countries (CPLP), strengthening the operational capacity of notarial services, and increasing the State Contingency Reserve.
Under the revised budget, total government expenditure will increase by $101.1 million, raising the consolidated 2026 budget from $2.291 billion to $2.392 billion.
In his remarks during the opening of the budget debate last week, the Prime Minister Xanana Gusmão said the increase will not be financed through additional withdrawals from the Petroleum Fund. Instead, it will be funded through a reallocation of existing financing sources, including carried-over budget balances, available funds held in non-operational state bank accounts, and higher domestic revenue collection.
The parliamentary review process began after the government formally submitted the proposal to the National Parliament on May 15, following its approval by the Council of Ministers on May 13.
After public hearings conducted by parliamentary standing committees and the presentation of the proposal by Prime Minister, lawmakers approved the amendment in principle on May 28 before proceeding to detailed discussions and article-by-article deliberations, culminating in its final approval on Tuesday.
Following the completion of the parliamentary process, the amended budget bill will be submitted to the President of the Republic for promulgation in accordance with the Constitution of the Democratic Republic of Timor-Leste.
TATOLI
