The Government of Timor-Leste will start this Thursday, June 27, the debate on the tax ceiling to be set in the General State Budget (OGE) of 2020, with three scenarios to be presented at the Budget Days weekend event.
What Are the Budget Days?
The Budget Days represent the first major milestone in a long preparation process for the OGE 2020, which began in March. Debate and approval of the final text in the National Parliament is scheduled for December.
This is traditionally the first broad debate within the executive and with officials from across the administration, institutes, and public agencies. Beyond the bills themselves, the Budget Days address topics including:
- National Priorities for the OGE
- Implementation methods for the Strategic Development Plan 2011–2030
- Sustainable Development Objectives
- The VIII Constitutional Government Program
- Annual Action Plans
Budget Preparation Timeline
Following the Budget Days, the process moves through several defined stages:
| Deadline | Milestone |
|---|---|
| After Budget Days | Government defines fiscal ceiling and distributes amounts by ministry |
| August 1 | Deadline for ministry budget proposals |
| August 6–21 | Analysis of budget proposals and requests |
| Mid-September | Draft Budget Law approved by Council of Ministers |
| End of September | Budget books completed |
| October 15 | Submission to Parliament |
| November 30 | Public hearings and committee debates conclude |
| December | Parliamentary debate and approval |
Context: The 2019 Budget
Last year, the Timorese Government approved a ceiling of $1.35 billion at the Budget Days. A further $650 million was later added in the final budget proposal approved by the National Parliament, bringing the total to $1.83 billion.
However, the first budget was vetoed by President of the Republic Francisco Guterres Lu-Olo, forcing the country to operate on a monthly twelfths basis at the start of the year. The $650 million earmarked for a majority stake in the Greater Sunrise consortium was subsequently withdrawn in a new parliamentary debate. A revised State Budget of $1.482 billion was ultimately approved and promulgated in February.