2016 budget proposal puts fantasies before people's needs

Liga ba artigu ida ne'e iha Tetum

On 29 October, Timor-Leste's Government sent Parliament a budget proposal which would spend $1.56 billion during 2016, essentially the same amount as in 2015. Spending for the ZEESM special economic zone in Oecusse grew 63% to $218 million, while appropriations nearly doubled for roads, ports, airports and the Tasi Mane project.

The 27% increase on spending for physical infrastructure is financed by cuts across the public service, including health (14%), education (7%, notwithstanding many more school-age children), the judicial system (36%), veterans' benefits (22%), security forces (19%) and other sectors. Agriculture, which receives less than 2% of state spending but is the livelihood for most Timorese families, will be cut by 20%.

Although Government's stated priorities have changed in the last few years, infrastructure remains dominant. High expenditures in 2011-2013 for the power plants and electricity grid have been replaced by money for ZEESM and Tasi Mane, whose benefits for most people are less clear.  According to the budget documents, public spending on ZEESM from 2015 through 2020 will exceed $1.1 billion, while Tasi Mane (including Suai Supply Base, Suai airport and part of the Suai-Beacu Highway, but not construction of the Betano refinery, Beacu LNG plant or Sunrise pipeline) will absorb more than $1.4 billion, although both amounts are likely to increase.

Last Friday, Timor-Leste's Central Bank issued its latest quarterly report on the Petroleum Fund, which finances more than 80% of the state budget. Between June and September 2015, the Fund's investments lost $450 million in value, and the Government withdrew $194 million to finance its activities during the same period. The balance in the Fund is lower than it has been in sixteen months.

Oil and gas revenues to the Fund totalled $218 million in the third quarter, -- less than half the average during 2014 and 63% lower than in 2013. Although this is partly because world oil prices are low, it is also because Timor-Leste's producing oil and gas fields are more than three-quarters used up. They produced 27% fewer barrels during the first eight months of 2015 than during the same period in 2012, the peak year of production. The Kitan field is already shutting down, and extraction from Bayu-Undan will cease in 2021.  Although it is possible that Greater Sunrise or yet-to-be discovered fields could provide more money in the future, the likelihood is low and it would be foolhardy to enact spending policies based on wishes.

Unfortunately, Timor-Leste's non-oil ("domestic") revenues remain small and are not growing fast enough to fill the gap left by vanishing oil revenues. For 2016, the Government projects domestic revenues (taxes and user fees) to increase by only 0.6%. Although inflation and population growth have slowed down (each is estimated at 1.8% in 2016), inflation-corrected per capita domestic revenues will drop more than 3% in 2016.

Although the Petroleum Fund may have passed its peak, the proposed 2016 State Budget continues to withdraw far more than the Estimated Sustainable Income (ESI). The 2015 budget will take $689 million more than the "3%" ESI, but the proposal for 2016 is to spend $739 more than ESI. That would be more than 7% of the nation's petroleum wealth, the highest percentage ever. The proposal expects even higher future withdrawals -- 8% in 2017, 11% in 2018 and in 2019.

The budget proposal also expects Timor-Leste to borrow $821 million during the next three years and more after that.  The largest loans are for Dili airport, the Suai Supply Base, and part of the Suai-Beacu Highway.  For the first time, the budget includes $0.25 million to repay loans, but understates how much debt will cost in future years and does not discuss where the repayments will come from after the oil and gas are gone.

Although total expenditure planned for 2016 will be as much as in 2015, spending for "goods and services" has dropped, perhaps due to the strong US dollar and improved public service efficiency. These savings have been shifted to Public Transfers (payments to individuals and institutions) and Development Capital (physical infrastructure).

Public Transfers are not broken down in the budget or in any of the Government's transparency mechanisms, so we do not know what they pay for or how much is carried over from one year to the next. However, it is clear that ZEESM and payments to veterans get the largest share, with smaller amounts for other pensions, public welfare, and subsidies for state institutions like TimorGAP.

We are concerned that programs which benefit most people -- such as health care, education, agriculture, rural roads and water --  are being cut, while projects which will be mainly used by the affluent and powerful -- airports, highways, oil processing -- get a larger share. As Parliament proceeds to analyze, discuss, amend and enact the state budget over the next six weeks, we urge the Distinguished Deputies to consider equity, sustainability, transparency and democracy.

Many factors -- world oil prices, foreign exchange rates, international stock markets and the non-renewable nature of oil and gas reserves -- are impossible for Timor-Leste to control. But we do have the power and the responsibility to manage our limited resources wisely, and not to squander them on wasteful spending or throw them away on projects with dubious economic or social benefits.

Timor-Leste's finite petroleum wealth is the birthright of every citizen, not only a few leaders, advisers and contractors. We hope that it will be allocated fairly and equitably, as the Constitution requires, respecting the rights of current and future generations.

Bobby Boye sentenced to six years in federal prison

On 15 October, a U.S. Federal Court ordered former Timor-Leste legal adviser Bobby Boye to serve six years in prison and repay $3.51 million dollars to Timor-Leste. Although the plea deal effectively ends the criminal case against Boye, many questions remain unanswered regarding the full costs of his crimes to Timor-Leste, as well as who else may have been involved in his schemes. We hope that investigations proceed.

In 2010, Norway hired the Nigerian-American “tax expert” to help Timor-Leste’s Ministry of Finance collect petroleum taxes more effectively, and Boye recommended revising legal documents and filing assessments against oil companies which he said had underpaid their taxes. In 2011, Boye’s pay began coming from Timor-Leste’s treasury, rather than from Norwegian Aid. He supplemented it by inventing a fake company “Opus & Best” and awarding them eight million dollars in contracts from Timor-Leste for legal drafting services.

Boye’s scheme began to unravel in 2013, and U.S. authorities arrested him in June 2014, charging him with seven counts of conspiracy and wire fraud for payments totaling $3.51 million dollars that Timor-Leste had sent to “Opus & Best.” Media attention highlighted his conspicuous spending of his ill-gotten gains, using them to buy luxury houses, cars and watches. Unfortunately, we have not seen much interest in repairing the weak systems that allowed his scheme to take place, or in finding out if Timor-Leste officials were involved, either by conspiracy or negligence.

La’o Hamutuk began researching public sources, and we quickly learned of many events in Boye’s life which should have prevented his employment – being banned from trading stocks, forgery, personal bankruptcy while concealing assets, conviction and imprisonment for embezzlement, nonexistent legal experience, fake business registration, among other things. A Norwegian journalist unearthed further information about his fraudulent educational claims, references and employment history. In July 2014, La’o Hamutuk wrote to U.S. prosecutors, providing information which we believed would help them understand the case and investigate it more effectively.

In April 2015, Boye pleaded guilty to one count of wire fraud, avoiding 140 years of prison time, as well as a trial which could have brought more information to light.  As negotiations proceeded on his sentence, we wrote to the prosecutors again, explaining that the cost of his crimes to Timor-Leste may have been fifty times more than the $3.5 million he stole directly.

On 15 October, U.S. Federal Judge Freda Wolfson sentenced Boye to six years in prison, followed by three years of supervised release. He will begin his prison time on 30 November, probably at the Fort Dix Federal Correctional Institution in New Jersey, a former U.S Army base. The court also ordered Boye to pay $3.51 million in restitution to the U.S. Treasury, to be distributed to Timor-Leste's attorney Pierre-Richard Prosper of the Arent Fox law firm. The payment is due immediately, although a schedule may be worked out. The Court generously did not require Boye to pay interest (which could be a million dollars or more) and ignored La'o Hamutuk's explanation that Boye's crimes could cost Timor-Leste $176 million.

U.S prosecutors announced the sentence in a press release, which was reported in New Jersey media.

La’o Hamutuk has compiled a comprehensive, updated web page on this case, with links to many legal and other documents. We hope that the competent, responsible authorities in Timor-Leste will use it to help find out which Timor-Leste laws were violated, what systems must be fixed, and who else was involved in Boye’s crimes.

Mai Enkontru Publiku kona-ba Projetu Tasi Mane

 Link to this blog article in English 

Projetu Tasi Mane nia Implikasaun ba Timor-Leste nia Ekonomia no Sosiedade

Kinta, 22 Outubru 2015    9:00–12:30
  Auditorium Liceu UNTL, Kaikoli, Dili

Timor-Leste nudár nasaun ne’ebé depende maka’as ba reseita mina-rai iha mundu: 73% estadu nia reseita iha 2014 mai hosi fa’an mina no gas, no 20% tan hosi reseita investimentu ne’ebé hosi Fundu Petrolíferu. Iha 2014, reseita petrolíferu tun 40% kompara ho tinan kotuk tanba folin mina-rai mundiál tun maka’as, no mós produsaun ne’ebé tun 24% tanba rezerva mihis ona – nivel produsaun másimu ita hetan iha 2012, hafoin ne’e komesa tun, no sei kontinua tun bainhira Kitan remata nia produsaun iha tinan ida ne’e, enkuantu Bayu-Undan remata depois tinan lima tan.

Planu Estratéjiku Dezenvolvimentu 2011-2030 fó informasaun balun kona-ba Projetu Tasi Mane – Suai Supply Base, Refinaria Betano, LNG Plant Beaçu, no Auto-estrada Costa Súl. La’o Hamutuk fó preokupasaun boot ba projetu ne’e nia viabilidade ekonómika, impaktu meiu ambientál no sosiál sira ohin no ba futuru. Ami diskute ona ho ema balun hosi Governu, sosiedade sivíl no ajénsia internasionál sira, no haree katak ema barak iha preokupasaun hanesan ami.

Timor-Leste tama ona iha ‘malisan rekursu’ – katak estadu sira ne’ebé depende ba rekursu naun-renovavel, dala barak falla atu dezenvolve fonte rendimentu seluk tanba sira hanoin katak mina-rai sei nunka maran. Sira mós falla atu hadi’ak povu nia moris tanba la investe iha saúde, edukasaun no servisu esensiál sira seluk. Ita nia rekursu mina-rai sai maran, no agora iha ema barak ne’ebé mak rekoñese ona katak ita tenke diversifíka ita nia ekonomia atu salva ita nia an hosi dependénsia ba mina-rai.

Timor-Leste tenke halo avaliasaun kle’an liu tan kona-ba karik Projetu Tasi Mane ne’e sei fó vantajen ba povu Timor-Leste – projetu ne’e nia kustu billaun barak atu implementa, ne’ebé nia fonte sei ma hosi parte boot Timor-Leste nia riku soin mina-rai no gas. Projetu ne’e sei hamenus prioridade estadu nian ba saúde, edukasaun, sanitasaun no agrikultura, buat sira ne’ebé mak esensiál atu hadi’ak ita nia povu nia moris, dezenvolve ita nia rekursu umanus no dezenvolve ekonomia non-oil. Aleinde ne’e, projetu ne’e uza rai barak ne’ebé importante ba agrikultura, no ida ne’e sei hamenus produsaun agrikultura, no ita nia dependénsia ba importasaun hosi rai li’ur sei kontinua.

Enkontru públiku ne’e envolve aprezentasaun hosi Francisco Monteiro, Prezidente TimorGAP, no Juvinal Dias hosi La’o Hamutuk, no hafoin ne’e diskusaun. Ita aprende kona-ba TimorGAP nia planu no estratéjia sira. La’o Hamutuk fahe nia perspetiva kritika (PowerPoint ka PDF), no partisipante nain 150 halo diskusaun ba oras rua.

Come to a public meeting about the Tasi Mane Project

 Liga ba artigu ida ne'e iha Tetun

The Implications of the Tasi Mane Project for Timor-Leste’s Society and Economy

Thursday, 22 October 2015    9:00 – 12:30
Auditorium, UNTL Liceu campus, Kaikoli, Dili

Timor-Leste is one of the most petroleum dependent countries in the world: sales of oil and gas made up 73% of state revenues in 2014, and another 20% came from the investment of past oil income. However, in 2014, oil revenues fell by 40% compared to the previous year. This was partly a result of the fall in global oil prices, but was also largely due to the fact that production levels fell by 24% in the same period. Our oil is running out – production peaked in 2012, and will continue to fall as Kitan ends production this year, and Bayu-Undan ends around five years after that.

The Tasi Mane Project – the Suai Supply Base, Betano Refinery, Beaçu LNG Plant and South Coast Highway – is discussed in the national Strategic Development Plan 2011-2030. However, La’o Hamutuk has serious concerns about the economic feasibility of this project, as well its current and future environmental and social impacts. We have discussed this issue with people in Government, civil society and international agencies, and many of them share our concerns.

Timor-Leste is falling into the ‘resource curse’ – where states who depend on extracting non-renewable resources neglect sustainable alternative economic sectors because decision-makers believe that oil will last forever. They also fail to improve their people’s well-being by under-investing in public health, education and other essential services. As our oil deposits run out, more and more people inside and outside Government recognize that we must escape from petroleum dependency by diversifying the economy.

We need to consider carefully whether the Tasi Mane petroleum infrastructure project moves us in this direction – it will cost billions to implement, a significant fraction of Timor-Leste’s finite oil and gas wealth. This takes money away from health care, education, sanitation and agriculture, all of which are essential for improving quality of life, strengthening human resources and growing the non-oil economy. Also, these projects will take up valuable agricultural land, reducing productivity and continuing dependency on imports.

The following paragraph was revised after the meeting.

This public meeting began with presentations by Francisco Monteiro, President of TimorGAP and Juvinal Dias of La’o Hamutuk, followed by two hours of lively discussion among the 150 participants. They heard TimorGAP’s plans and dreams, as well as La’o Hamutuk's skeptical perspective (PowerPoint or PDF).

TL kontinua iha nivel insufisiente ba Indise Transparénsia Orsamentál

Link to this blog in English

OBS 2015: Timor-Leste kontinua iha nivel insufisiente ba Indise Transparénsia Orsamentál – Governu kontinua taka informasaun ne’ebé sidadaun sira presiza atu komprende no influensia uza osan públiku nian.

Relatóriu global ida ne’ebé independente tebes hetan katak Timor-Leste kontinua limita fahe informasaun ba públiku no haklekar sai katak sistema kontabilidade orsamentál nasaun nian ne’e fraku teb-tebes.

International Budget Partnership (IBP) nia relatóriu ba Open Budget Survey 2015 fó sai katak Timor-Leste falla atu aumenta maka’as nia esforsu ba transparénsia nian kona-ba fahe nia informasaun orsamentál ba nia sidadaun sira. Ne’e mak relatóriu ba dala lima hosi IBP, relatóriu ida ne’ebé independente tebes iha mundu, ne’ebé mai hosi survey ne’ebé komparativu duni kona-ba transparénsia orsamentál, ho partisipasaun sidadaun, no instituisaun monitorizasaun sira ne’ebé independente iha prosesu orsamentál. Kombinasaun hosi komponente sira ne’e mak sai tiha pillar importante ba sistema kontabilidade orsamentál nian.

Hosi avaliasaun ba nasaun 102, Survey 2015 nee hetan katak Timor-Leste seidauk hadi’ak natoon atu muda sai hosi kategoria médiu iha Índise Orsamentál ne’ebé Nakloke “Open Budget Index (OBI)”, ne’ebé uza kritériu sira ne’ebé internasionalmente koñesidu atu fó pontuasaun transparénsia nian ho eskalaun hosi 0-100. Nasaun ne’ebé hetan pontu 61 ba leten iha OBI mak bele konsidera nudár nasaun ne’ebé fornese informasaun ba públiku ho sufisiente.

Timor-Leste nia pontuasaun OBI nian iha 41, katak Governu nia informasaun orsamentál ba públiku limitadu tebes. Governu la fó informasaun ne’ebé sufisiente ba sidadaun sira atu nune’e sira bele komprende didi’ak orsamentu no mós atu halo Governu sai kontavel. Timor-Leste iha fatin kategoria médiu iha OBS 2010 no 2012 tanba Governu la publika Pre-Budget Statement (Envelope Fiskál no Orsamentu Sirkulár), Analiza Semestral ba Orsamentu (Mid-Year Review), no la iha inkonsistensia ba publikasaun Relatóriu Trimestral (In Year Report) no Matadalan Sidadania nian.

“Bainhira Governu laiha kontabilidade iha nia orsamentu rasik, entaun susar tebes ba povu Timor-Leste atu bele garante katak sira nia osan ne’e sei uza ba sira nia moris di’ak,” tenik Juvinal Dias, Peskizadór ba asuntu ekonomia no rekursu naturais iha La’o Hamutuk, ne’ebé hala’o peskiza ba Timor-Leste. “Governu loloos tenke publika relatóriu orsamentál trimestral no annual nian tuir tempu, loke partisipasaun públiku nian ba prosesu preparasaun orsamentál nian, no prosesu diskusaun orsamentál labele taka ba públiku, hanesan tinan rua ikus ne’e hala’o hosi Komisaun Eventual.”

Jerálmente, OBS 2015 ne’e hetan katak nasaun 98 hosi nasaun 102 ne’ebé hetan avaliasaun ne’e menus sistema ida ne’ebé adekuadu atu asegura katak osan povu nian ne’e uza tuir dalan ne’ebé efisiente no efikás. Nasaun 98 ne’e falla iha mínimu pillar kontabilidade nian ida hosi pillar tolu seluk (transparénsia, partisipasaun públiku, no fiskalizasaun ne’ebé forte); no nasaun 32 hosi nasaun 98 hirak ne’e monu iha pillar tolu ne’e tomak. Sistema kontabilidade orsamentál ne’ebé fraku tebes iha mundu tomak hatudu hela ameasa ba implementasaun akordu internasionál sira ne’ebé importante, hanesan Nasoins Unidas nia Meta Dezenvolvimentu Sustentável ne’ebé hein atu deside iha Konferénsia Klimátika iha Paris iha 2015.

Iha Pillar primeiru Transparénsia, iha nasaun 24 de’it mak lakon eskalaun ida hosi eskalaun hat ne’ebé iha. Sira nia pontuasaun ne’e liu 60 hosi 100 iha OBI, no nasaun hirak ne’e fó informasaun ne’ebé sufisiente ba nia sidadaun sira ne’ebé bele ajuda sira hodi tau matan ba Governu ne’ebé uza povu nia osan. Ne’e aviza mai ita katak, nasaun 78 seluk , inklui Timor-Leste, ne’ebé fó informasaun orsamentu ne’ebé insufisiente sai uma ba 68% populasaun mundu nian. Nasaun 17 hosi nasaun sira ne’e mak la fó informasaun natoon ka laiha duni informasaun orsamentál ba sira nia sidadaun.

Maski nune’e, estudu ne’e identifika katak transparénsia orsamentál ne’e jerálmente hetan mudansa – deskobrevimentu foun sira ne’e konsistente ho relatóriu anterior sira. Rata-rata pontuasaun OBI nian sa'e to 45. Iha duni progresu ne’ebé forte, partikulármente entre nasaun no rejiaun balu ne’ebé antes ne’e la transparente, inklui Repúblika Kyrgyz (ne’ebé nia OBI ne’e sa’e besik dala tolu), Tunisia (nia OBI efetivamente sa’e dala haat), no Áfrika Osidentál Française.

Bainhira ita junta tiha nasaun sira ne’ebé nia transparénsia fraku ne’e sai ida, ne’e hanesan hamenus oportunidade partisipasaun no tau matan povu nian. Ho pontu 60 ka menus iha parte survey ida ne’e, iha nasaun 95 hosi nasaun 102 mak falla atu fó oportunidade ba partisipasaun públiku nian. Tuir mai, survey mós hetan katak peskiza lejizlativa nian no kapasidade analitiku, no mós kualidade sistema garantia iha maioria órgaun auditoria nian ne’e fraku, hodi fó ameasa ba abilidade instituisaun tau matan sira atu bele efikás hodi asegura povu nia osan.

Timor-Leste nia pontuasaun 10 kona-ba oportunidade ne’ebé Governu fó ba partisipasaun públiku nian iha prosesu orsamentál nian. Ho hanoin atu haforsa Timor-Leste nia instituisaun fiskalizasaun formal sira, pontuasaun ba lejizlatura iha 45 no pontuasaun ba instituisaun supreme ba audit nian ne’e 83. Figura sira ne’e bele hetan mudansa di’ak liután bainhira Governu envolve partisipasaun povu nian bainhira prepara orsamentu estadu nian, Parlamentu tenke garante katak diskusaun no debates orsamentál ne’e sai nakloke liu, katak la uza ona Komisaun Eventual atu deside orsamentu estadu nian. Aleinde ne’e, Governu tenke publika relatóriu audit Tribunal das Contas nian kompletu ne’ebé inklui deklarasaun finanseiru sira ba públiku.

Bainhira ita kombina pillar tolu ne’e tomak, iha de’it nasaun hat hanesan Brazil, Norwegia, Áfrika du Súl no Estadus Unidus mak fó transparénsia orsamentál ne’ebé sufisiente, estabiliza oportunidade ne’ebé sufisiente ba partisipasaun públiku nian no iha instituisaun formal sira ne’ebé halo fiskalizasaun ne’ebé adekuadu.

Pelu kontráriu, survey ne’e hetan katak nasaun 32 mak la sufisiente iha pillar tomak kontabilidade nian. Númeru nee inklui nasaun lubuk ne’ebé konsistente hodi la fó ka laiha duni informasaun orsamentál nian, hanesan: Aljeria, Bolivia, Cambodia, Xina, Giné Equatorial, Fiji, Iraq, Myanmar, Qatar, no Saudi Arabia.

“Públiku presiza asesu ba informasaun orsamentál no oportunidade atu partisipa iha prosesu orsamentál nian. Fiskalizasaun hosi lejizlatura sira no instituisaun auditoria sira ne’ebé la’o hamutuk ne’e sei kontribui ba uza osan povu nian sai kontavel liu,” tenik Warren Krafchik, Diretór Ezekutivu International Budget Partnership. “Haburas órgaun evidénsia nian indika ‘check and balance’ fó rezultadu di’ak ba povu, espesialmente sira ne’ebé kiak ka vulneravel tebes.”

Maski nune’e, progresu substansial bele atinje lalais. Porezemplu, survey hetan katak maioria nasaun sira ne’ebé menus transparente ne’e loloos prodús sira nia informasaun orsamentál ne’ebé signifikante ba sira nia uzu internal; rezultadu boot bele hetan liu hosi kustu ki’ik ida liu hosi publika dokumentu sira ne’e iha Governu nia website.

Meius no mekanizmu atu estabelese pillar kontabilidade orsamentál hirak ne’e loloos iha liman hela. Maibé ikus mai, atu promove transparénsia, partisipasaun no fiskalizasaun ne’e besik sempre fila ba kestaun vontade polítika.

“Timor-Leste nia progresu ne’ebé fraku ne’e fó preokupasaun boot ba ita nia sistema orsamentál nasionál nian atu sai transparente no kontavel liu,’ hateten Juvinal Dias. “Governu tenke foti pasu sira tuir mai atu bele halo mudansa ida ne’ebé rápidu liu hanesan publika informasaun orsamentál nian ba públiku, loke oportunidade ba partisipasaun povu nian iha prosesu halo orsamentu estadu no haforsa fiskalizasaun orsamentál nian hosi órgaun lejizladór no auditoria nian”.

Ita boot bele download verzaun PDF artigu ida ne'e iha Ingles ka Tetum, ka relatoriu global ka Timor-Leste husi Open Budget Survey tinan 2015 iha Ingles.

TL falls short on budget transparency index

Liga ba artigu ida ne'e iha lingua Tetum

Timor-Leste falls short on global budget transparency index—the government continues to deny citizens the information needed to understand and influence the use of public money

Major independent global report finds that Timor-Leste continues to make only limited information available to the public and reveals that overall country budget accountability systems are deficient 

Timor-Leste failed to increase the amount of national budget information it provides to citizens enough to be considered sufficiently transparent, according to the International Budget Partnership’s Open Budget Survey 2015. The report, the fifth of its kind, is the world’s only independent, comparative survey of budget transparency, citizen participation, and independent oversight institutions in the budgeting process. Combined these components are the main pillars of accountable budget systems.

Assessing 102 countries around the world, the 2015 Survey finds that Timor-Leste has yet to improve enough to move out of the middle category on the Open Budget Index, or OBI, which uses internationally recognized criteria to give each country a transparency score on a 100-point scale. For a country to be found to be providing the public with sufficient information, it needs to score above 60 on the OBI.

Timor-Leste’s OBI score of 41 means that the government makes limited budget information publicly available, it does not provide citizens with sufficient information to fully understand the budget and hold the government to account. Timor-Leste has placed in the middle category in the 2010 and 2012 rounds of the Open Budget Survey because the government is not publishing Pre-Budget Statements (Fiscal Envelope and Circular Budget) or Quarterly Budget Analysis (Mid-Year Review), and there have been inconsistencies in the publication of the Quarterly Reports (In Year Report) and the Citizen Budget.

“When the Government lacks accountability in its budget, it is very difficult for the people of Timor-Leste to be able to guarantee that their money will be used to improve their lives,” said Juvinal Dias, Researcher on Economy and Natural Resources with La’o Hamutuk, which conducted the research for Timor-Leste. “The Government should publish quarterly and annual budget reports on time, and open the budget preparation process for public participation – the discussion process for the budget should not be closed to the public, as the Ad-Hoc Committee has done for the last two years.”

Overall, the Open Budget Survey 2015 finds that 98 of 102 countries surveyed lack adequate systems for ensuring that public funds are used efficiently and effectively. The 98 countries fall short on at least one of the pillars of accountability (transparency, public participation, and strength of oversight); 32 of these fall short on all three. The widespread lack of strong budget accountability systems poses a threat to the implementation of critical international agreements, such as the United Nations’ Sustainable Development Goals and the international agreement that is expected at the 2015 Paris Climate Conference.

On the first pillar of transparency, a mere 24 countries—less than one in four— score over 60 out of 100 on the OBI and thus provide citizens with sufficient information to enable them to monitor the government’s use of public money. Alarmingly, the remaining 78 countries, including Timor-Leste, that provide insufficient budget information are home to 68% of the world’s population. Seventeen of these countries provide scant or no budget information to their citizens.

However, the study finds that budget transparency is generally improving—a finding consistent with previous reports. The average OBI score has increased to 45. Progress was particularly robust among some countries and regions that were previously not as transparent, including the Kyrgyz Republic (its OBI nearly tripled), Tunisia (its OBI effectively quadrupled), and Francophone West Africa.

Compounding the widespread lack of transparency that nonetheless remains is a similar lack of opportunities for public participation and oversight. With scores of 60 or less on this part of the survey, 95 of 102 countries fall short in providing opportunities for public participation. Further, the survey finds that legislative research and analytic capacity, as well as quality assurance systems in most national audit bodies, are lacking, severely compromising the ability of oversight institutions to be effective guardians of the public purse.

Timor-Leste scored 10 on the opportunities the government provides for public participation in budget processes. With regard to the strength of Timor-Leste’s formal oversight institutions, the score for the legislature was 45 and the score for the supreme audit institution was 83. These could be improved if the government encouraged the public participation in the preparation of the budget, if Parliament guarantees that budget discussions and debates are more open, and if the Eventual Commission can no longer make the final decision on the budget. In addition, the Government must publish complete audit reports for the Court of Accounts, including financial declarations to the public.

Combining all three pillars, only four countries, Brazil, Norway, South Africa, and the United States, provide sufficient budget transparency, establish sufficient opportunities for public participation, and have adequate formal oversight institutions.

In contrast, the survey finds that 32 countries are insufficient on all three pillars of accountability. These include a number of countries that have consistently provided scant or no budget information at all: Algeria, Bolivia, Cambodia, China, Equatorial Guinea, Fiji, Iraq, Myanmar, Qatar, and Saudi Arabia.

“The public needs access to budget information and opportunities to participate throughout the budget process. Coupled with oversight by legislatures and audit institutions this contributes to a more accountable use of public money,” said Warren Krafchik, Executive Director of the International Budget Partnership. “A growing body of evidence indicates such budgetary checks and balances yield better outcomes for people, especially those who are poor or vulnerable.”

However, substantial progress can be achieved quickly. For instance, the survey finds that most of the least transparent countries actually produce significant budget information for their internal use; major gains could be made at little cost by just posting these documents on the government website.

The means and mechanisms to establish these budget accountability pillars are readily at hand. Ultimately, advancing transparency, participation, and oversight almost always comes down to a question of political will.

“Timor-Leste’s lack of progress in making our national budget systems more transparent and accountable is of great concern,” said Juvinal Dias. “The government should take the following steps toward rapid improvement: make budget information available to the public; make opportunities available for public participation in the budget process; and strengthen fiscal oversight by the legislator and auditor.”

Download a printable PDF version of this article in English or Tetum, or the global or Timor-Leste-specific reports from the 2015 Open Budget Survey in English.

Come Discuss Agriculture in Timor-Leste's economy

Invitation to a Public Meeting and Discussion

The role of agriculture sector in the economic development of Timor-Leste

Speakers

• Sr. Estanislau A. da Silva, Minister of State and Coordinator of Economic Affairs and Minister of Agriculture and Fisheries
• Guteriano Neves, Researcher at the Research and Analysis Department, Presidential office
• Maxi Tahu, La’o Hamutuk

Date: 7 August 2015

Time: 09.00 to 12.30

Venue: Centro João Paulo II, Comoro - Dili

Contact La’o Hamutuk on 3321040; 77237176 or 77336307 ka  if you need more information

Konvite ba Enkontru Publiku no Diskusaun

Setor Agrikultura nia papel iha dezenvolvimentu ekonomia Timor-Leste nian

Orador sira

• Ministro Estadu Koordenador Asuntu Ekonomia no Ministru Agrikultura no Peska, Sr. Estanislau A. da Silva
• Guteriano Neves, Peskizador Departementu Peskiza no Analiza Presidencia da Republika
• Maxi Tahu, La’o Hamutuk.

Loron: 7 Agostu 2015

Horas: 09.00 - 12.30

Fatin: Centru Joao Paulo II, Comoro – Dili

Se presiza informasaun liu tan bele kontaktu La’o Hamutuk iha 3321040; 77237176 ka 77336307