Pílar 2

Sustainable Public Finances

We support central agencies to lead a coordinated, results-driven and inclusive planning, budgeting and expenditure framework that is aligned with the Government of Timor-Leste’s strategic development priorities and public financial management strategies.

Inclusive Public Investment Planning and Budgeting

We support the Government of Timor-Leste in developing stronger, more consistent policy frameworks and systems that prioritise investments driving inclusive and sustainable growth. This is achieved through:

  • Assisting the government in developing medium-term infrastructure plans, annual plans, and budgets.
  • Supporting the government in developing and implementing stronger policies and processes across the entire infrastructure project life cycle.
  • Collaborating with the Partnership for Infrastructure (P4I) to help the government implement gender equality, disability, and social inclusion (GEDSI) and climate change recommendations from the government’s GEDSI in Infrastructure report and the Maubisse Declaration.

Budget Reform

We support the Government of Timor-Leste in implementing a Public Financial Management (PFM) reform strategy that ensures targeted and inclusive budget allocations across sectors, enhancing service delivery while diversifying and increasing revenue streams. This is achieved through:

  • Enhancing government capacity to report on budget execution and overall performance.
  • Supporting the adoption and maintenance of digital PFM systems.
  • Assisting the government in implementing the Value-Added Tax (VAT) law.
  • Promoting inclusive planning and budgeting processes.

Accountable Budget Execution

We support the Government of Timor-Leste in improving budget execution while adhering to the principles of fiscal discipline. This is achieved through:

  • Assisting the government in conducting competitive and efficient public procurement.
  • Building MoF’s capacity to support improved budget execution by line ministries.
  • Enhancing civil society’s understanding of and ability to engage with the government on budget preparation and execution.