On Friday 14 September 2012, the Council of Ministers approved a mid-year budget rectification proposal (full text in Portuguese) and sent it to Parliament for enactment. Parliament began its legislative session the next day, and Economics Committee C went to Baucau on Monday to discuss the proposed budget law.
The proposed revision does not change the total amount of the 2012 State Budget. However, it adds $55.4 million in new spending, to be financed by borrowing $50 million from the $164 million allocated to the Tasi Mane petroleum infrastructure project in the 2012 budget's Infrastructure Fund "on condition of being reinstated in 2013." Timor-Leste's 2013 State Budget will probably continue to be one of the fastest-growing in the world, which La'o Hamutuk believes leads to bankruptcy in about 12 years.
The biggest new expenditures are these, with details in the budget documents on our website:
- $26.9 million more for veterans' pensions, adding to $80.4 million already appropriated, of which $73.8 million had been spent by 18 September;
- $ 7.1 million more for old-age pensions, adding to $35.9 million already appropriated for Social Security, of which $16.7 million had been spent by 18 September;
- $ 6.1 million more for the Contingency Reserve, adding to $21.2 already appropriated, of which apparently only $1.6 million had been spent by 18 September;
- $ 6.4 million more in three items for the military and police, adding to $64.1 million already appropriated, of which $36.9 million had been spent by 18 September;
- $ 9.0 million more in seven other items for education, health, water transport, civil society and other functions.