Timor-Leste continues to spend "much more" than its revenues

Timor-Leste's 2027 budget proposal indicates expenditures will exceed revenues, reflecting significant development needs. The budget totals $2.569 billion, over 60% of non-oil GDP. Domestic revenues are projected to rise to $298.6 million, while sustainable revenue from the Petroleum Fund is estimated at $540.5 million. A remaining financing need of $1.666 billion will be covered by the Petroleum Fund, treasury balances, loans, and international support. The government warns that depleting the Petroleum Fund without new oil revenues could severely impact the economy, affecting salaries and social security payments. The budget aims to enhance public services and stimulate economic resilience through investments and reforms.