Dili, October 1st, 2020 – His Excellency the Prime Minister, Taur Matan Ruak, this Thursday, in the National Parliament, in the 2020 General State Budget law proposal draft overall debate opening speech, stated that the 2020 GSB is a resistance and resilience budget, as it actively contributes to reducing the negative impacts of the political impasse, natural disasters, and the COVID-19 crisis, responding to urgent needs, stabilizing society and the economy of the country.
“I believe that this is a Resistance and Resilience Budget and that programs, measures and responses presented here illustrate ten months of budget execution, which have actively contributed to mitigate negative impacts caused by the political impasse, natural disasters and the crisis of COVID-19, in order to respond to the most urgent needs and to stabilize our society and economy, in a time of recession and generalized economic contraction in all countries of the world”, said Chief Executive, in his speech.
The Head of the Government also believes that this budget is a Budget of Hope in the economic Upturn and Recovery, which actively contributes to increasing the citizens’ confidence and allows taking the first steps to correct the country’s course.
The 2020 GSB has a total amount of US $1,497,100.00 (one billion, four hundred and ninety-seven million and one hundred thousand US dollars), divided as follows:
- $671,292,000.00 (six hundred seventy-one million, two hundred ninety-two thousand dollars) corresponding to the total amount executed between January and September 30th, 2020;
- $117,100,000.00 (one hundred and seventeen million and one hundred thousand dollars) corresponding to the total amount of the temporary budgetary allocation foreseen for the month of October, under the duodecimal regime; and
- $708,708,000.00 (seven hundred and eight million, seven hundred and eight thousand dollars) corresponding to the total budget amount that is expected to be executed between November to December 2020.
The total amount of the budget is divided into the following categories: Salaries and Wages $206,7 million dollars; Goods and Services $499,3 million dollars; Development Capital $213,4 million dollars: Public Transfers $568,7 million dollars and Minor Capital $8.9 million dollars.
This budget will mainly focus on short-term economic recovery, with the following measures:
Basic Food Basket Measure, to support families in meeting their basic needs, but at the same time, also encouraging the production and consumption of food products produced by Timorese, contributing to the objectives of job creation, support for entrepreneurship, self-employment, innovation, and private, community and cooperative initiatives.
Economic Upturn Measures, with the allocation of subsidies to support employers and individual entrepreneurs, with special attention to the important strategic sector of Tourism, one of the most affected by the crisis. It is intended to increase the immediate liquidity of companies in this sector and guarantee the condition for their sustainability and survival.
Contributions Waiver Measures, foregoing of income from taxes, fees, or rent, at a time when companies face losses and loss of income.
Support measures for Informal Workers, stimulating their enrolment in the different social security regimes, thus, contributing to the inclusion and reduction of the size of the informal economy in our society, as well as increasing the range of action of our social protection system.
The rejection of the General State Budget Law Proposal draft, in the National Parliament, in January 2020, followed by a period of uncertainly and political stalemate at the national level, forced the Government to work on the duodecimal regime, from January to October 2020.
The 2020 General State Budget urgent Debate, follows this schedule: October 1st and 2nd 2020 – Overall discussion and vote; October 5th – 8th, 2020 – Detailed discussion and vote and final vote; October 9th, 2020 – Final wording approval, and sending to His Excellency the President of the Republic. END/M-PMO