President of Timor-Leste calls for unity for sustainable development

Prime Minister Timor-Leste, Xanana Gusmão, stated that the country's economy is showing growth, but social inequality issues remain relevant. He promised to intensify efforts to improve investments in healthcare, education, and job creation.

According to Timor's leader, the non-oil economy achieved a growth of 4.3% in 2025, while in 2024, 37% of the population continued to live below the poverty line. Gusmão emphasized that overall growth statistics do not reflect the real situation of families with unstable incomes, who face difficulties accessing medical centers or have to travel long distances to find schools, often being in a state of hunger.

He noted that the government is taking steps to combat this inequality but admitted that these measures are insufficient to alleviate citizens' suffering. The Prime Minister called for more decisive and qualitative actions, noting that the State General Budget (OGE) for 2027 reflects this commitment.

Xanana Gusmão's speech took place in parliament during the presentation of the OGE for 2027, which has a consolidated total of 2.57 billion US dollars (2.26 billion euros). Under the slogan 'Strengthening Resilience Through Transformation: Economic Diversification for a Sustainable Future,' the 2027 budget will continue to provide essential public services through investments and reforms aimed at increasing productive capacity, generating employment, improving living conditions, and reducing the economy's vulnerability to external shocks.

As part of the proposed 2027 budget, the government allocated $182.6 million (163.7 million euros) to the health sector, representing a 17% increase, and $194.2 million (174.1 million euros) to education, which is 11% higher than the 2026 level. To counter child malnutrition, where 45% of children are stunted and 19% are underweight for their height, the 2027 OGE provides investments of $11.7 million (10.5 million euros) for the 'Bolsa Mãe' program and $24.7 million (22.2 million euros) for the school feeding program.

The Prime Minister named these programs as central elements of the strategy to combat child poverty and food insecurity. Furthermore, Xanana Gusmão stressed the vital role of job creation for development, stating that the OGE allocates $956.9 million (858 million euros) to economic matters, including infrastructure and production sectors. He added that the state administration cannot provide jobs for all citizens, and there is a need for growth in agricultural enterprises, fisheries, workshops, and private companies capable of creating jobs and contributing to national income.

The National Parliament of Timor-Leste will consider the 2027 OGE in general from today until Wednesday, and in detail from November 24 to December 4, followed by a final vote.

The main priorities of the Timor-Leste State Budget (OGE) for 2027 include the oil and gas sector, infrastructure development, and human capital formation, with a total consolidated amount of $2.568 billion (€2.18 billion).

The Ministry of Petroleum will receive $291.8 million (€262.44 million), a significant increase compared to the $128.5 million (€115.5 million) allocated in 2026. This growth is driven by the development of oil projects such as the Kuda Tasi and Jahal fields, as well as the Greater Sunrise project.

The Ministry of Public Works will receive $251.1 million (€225.8 million), which is $13.1 million (€11.78 million) more than in 2026. These funds are intended for investments in road networks, sanitation, water supply, electricity, and other infrastructure projects aimed at the country's economic development.

The Ministry for Veterans Affairs recorded $172.4 million (approximately €155 million) in the budget, up from $165 million (€148.4 million) in 2026. These funds will be used to pay pensions, allowances, and other support to veterans and their families.

The Government allocates $171 million (€153.80 million) to the education sector, an increase of $7.1 million (€6.3 million) over the 2026 amount, to finance the functioning of the education system. The Ministry of Health received an increase of $3.1 million (€2.79 million), reaching $81 million (€72.8 million) compared to the 2026 budget.

In addition to allocations for the ministries of education and health, the Government plans to implement projects in municipalities, as well as in the Oe-Cusse region and the Ministry of Public Works. For example, municipal authorities have provided funding for school meals amounting to $24.7 million (€22.07 million).

The proposal also includes issuing government debt up to a maximum of $1.6 billion (€1.44 billion), nearly double the $850 million (€763.3 million) set in 2026. According to the proposal, this debt will be directed towards investments in oil and gas exploration, processing, and transportation, as well as transport and communication infrastructure, to 'ensure economic security.'

The Government of Timor-Leste presented the OGE proposal to parliament on October 1 under the slogan 'Strengthening Resilience Through Transformation: Economic Diversification for a Sustainable Future.' The goal of this proposal is to continue implementing the priorities defined in the Government Program. It combines ensuring the continuity of essential public services with investments and reforms aimed at strengthening productive capacity, creating jobs, improving living conditions, and reducing the economy's vulnerability to external shocks. Discussions on the OGE will take place in general order from November 9 to 11, and in special order from November 24 to December 4.