At its meeting today, the East Timor Council of Ministers approved the Draft Act on the General State Budget for Fiscal Year 2009, which will now be submitted for consideration and approval to the National Parliament.The budget prepared by the Government aims on the one hand, to accelerate the process of rebuilding the nation and the level of social infrastructure in 2009, and on the other, to allow the development of the economy, job creation and poverty reduction.
The 2009 general state budget encompasses all revenue and expenditure of the State of East Timor. The total estimated revenue of 2009 general state budget January to December of 2009 derived from all sources - oil, non oil, the funds from development partners and other non-tax revenues - is US$1.3441 billion.
The total budgetary appropriations for all organs of the state is US$680, 873 million, accounting, therefore, the total estimated costs. Since the non-oil revenues estimated at US$91, 045 million, the fiscal deficit is thus of US$589, 828 million, which must be covered with funds from the Petroleum Fund.
According to the Petroleum Fund Law, the sustainable yield from the Petroleum Fund is three percent (3%) of oil wealth per year. For the budget from January 1 to December 31, 2009 sustainable income is estimated at US$407.8 million, of which the Government will need to raise an amount of the Petroleum Fund that exceeds the yield on Sustainable US$181.2 million.
The budget allocations for each organ of the state, are systematised as follows:
- US$93, 123 million for wages and salaries;
- US$248, 548 million for goods and services;
- US$38, 053 million for Minor Capital;
- US$205, 334 million for Capital Development;
- US$95, 815 million for payment of public transfers.
The general state budget for Fiscal Year 2008 will ensure the continuity of the work undertaken by the IV Constitutional Government. It is recalled that in 2008 the Government's initiatives for the "Year of Reform" was based on four key components:
- Seeking to make the government free of political interference;
- Establish the procedures and mechanisms to combat corruption;
- Improving the management fee and the income of civil servants;
- Reforming the budget and the financial system of government.
The continuation of these reforms in 2009 will be a component of 2009 general state budget. The Government believes that the continued reform of the public sector is crucial to the success and growth of the country.
