Timor-Leste Public Expenditure Review - Changing Course: Towards Better and More Sustainable Spending

Jul 19, 2026

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Timor-Leste Public Expenditure Review (September 2021) assesses the country’s macroeconomic performance and fiscal structure, then evaluates domestic revenue trends, public expenditure levels and budget execution, and the quality and management of spending. The review examines sector outcomes across health and education, highlighting sustainability, efficiency, and equity challenges. It also explores the role of digital information in policy implementation and service delivery, concluding with reform priorities to support better and more sustainable spending.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages202

Reading Time8 h 29 min

AccessFree to download

Table of Contents

Executive Summary

Introduction

Macroeconomic Performance

Policy Objectives and Macroeconomic Framework

Economic Activity

Fiscal, Monetary, and External Sectors

Conclusions and Recommendations

Domestic Revenue

Revenue Policy and Administration

Trends and Composition

Revenue Mobilisation Potential

Main Reform Priorities

Conclusions and Recommendations

Public Expenditure

Levels and Budget Execution

Composition and Drivers

Quality of Spending

Public Financial Management

Conclusions and Recommendations

Health

Sector Overview

Performance Indicators

Expenditure Analysis

Sustainability, Efficiency, and Equity

Conclusions and Recommendations

Education

Sector Overview

Performance Indicators

Expenditure Analysis

Sustainability, Efficiency, and Equity

Conclusions and Recommendations

Digital Information

Context and Rationale

Digital Data and Technology

An Application to Health Facilities

Potential Extensions

Conclusions and Recommendation

Annex

Annex 1: Public Expenditure and Financial Accountability (PEFA)

Annex 2: Public Investment Management Assessment (PIMA)

Disclosure Authorized Public Disclosure Authorized September 2021 Timor-Leste Public Expenditure Review Changing Course: Towards Better and More Sustainable Spending Pub lic Disclosure Authorized Pub lic Disclosure Authorized Public Timor-Leste Public Expenditure Review Changing Course: Towards Better and More Sustainable Spending September 2021 Contents Contents | Acronyms | x | | --- | --- | | Executive Summary | xv | | Introduction | 1 | | 1 Macroeconomic Performance | 5 | | 1.1 Policy Objectives and Macroeconomic Framework | 6 | | 1.2 Economic Activity | 7 | | 1.3 Fiscal, Monetary, and External Sectors | 9 | | 1.4 Conclusions and Recommendations | 20 | | 2 Domestic Revenue | 21 | | 2.1 Revenue Policy and Administration | 22 | | 2.2 Trends and Composition | 30 | | 2.3 Revenue Mobilisation Potential | 33 | | 2.4 Main Reform Priorities | 36 | | 2.5 Conclusions and Recommendations | 41 | | 3 Public Expenditure | 43 | | 3.1 Levels and Budget Execution | 44 | | 3.2 Composition and Drivers | 47 | | 3.3 Quality of Spending | 68 | | 3.4 Public Financial Management | 72 | | 3.5 Conclusions and Recommendations | 78 | | 4 Health | 81 | | 4.1 Sector Overview | 82 | | 4.2 Performance Indicators | 86 | | 4.3 Expenditure Analysis | 99 | | 4.4 Sustainability, Efficiency, and Equity | 107 | | 4.5 Conclusions and Recommendations | 113 | | 5 Education | 115 | | 5.1 Sector Overview | 116 | ii Timor-Leste Public Expenditure Review Contents | 5.2 | Performance Indicators | 121 | | --- | --- | --- | | 5.3 | Expenditure Analysis | 133 | | 5.4 | Sustainability, Efficiency, and Equity | 138 | | 5.5 | Conclusions and Recommendations | 146 | | 6 | Digital Information | 149 | | 6.1 | Context and Rationale | 150 | | 6.2 | Digital Data and Technology | 153 | | 6.3 | An Application to Health Facilities | 154 | | 6.4 | Potential Extensions | 160 | | 6.5 | Conclusions and Recommendation | 162 | | Annex | | 164 | | A. | Annex 1: Public Expenditure and Financial Accountability (PEFA) | 164 | | B. | Annex 2: Public Investment Management Assessment (PIMA) | 167 | Figures Figure 0.1:GDP growth (annual,%) xvi Figure 0.2: Public expenditure (% GDP) xvi Figure 0.3: Petroleum Fund (USD million) xvii Figure 0.4: Current account (% GDP) xvii Figure 0.5: Tax revenue (% GDP) xviii Figure 0.6: Tax revenue (2017,% GDP) xviii Figure 0.7: Public spending (% GDP, 2014-19) xx Figure 0.8: Functional categories (USD million) xx Figure 0.9: Fiscal multiplier (investment) xx Figure 0.10: Fiscal rigidity (USD million) xx Figure 0.1: PER outputs 4 Figure 0.2: PER structure 4 Figure 1.1: GNI per capita (USD, Atlas method) 6 Figure 1.2: Macroeconomic framework 6 Figure 1.3: GDP growth (annual,%) 8 Figure 1.4: GDP and consumption per capita (USD) 8 Figure 1.5: Expenditure contributions to GDP growth (percentage points) 9 Figure 1.6: Sectoral contributions to GDP growth (percentage points) 9 Changing Course: Towards Better and More Sustainable Spending iii Contents Figure 1.7: Public expenditure (% GDP) 10 Figure 1.8: Public expenditure (% GDP) 10 Figure 1.9: Petroleum Fund (USD million) 11 Figure 1.10: Petroleum Fund (USD million) 11 Figure 1.11: Government revenue (% GDP) 12 Figure 1.12: Revenue (% GDP) 12 Figure 1.13: Deficit financing (% GDP) 13 Figure 1.14: Public debt (% GDP) 13 Figure 1.15: Public expenditure (% GDP) 14 Figure 1.16: Fiscal projections (USD million) 14 Figure 1.17: Petroleum Fund projection (USD million) 15 Figure 1.18: Spending projections (USD million) 15 Figure 1.19: Petroleum Fund projection (USD million) 16 Figure 1.20: Spending projections (USD million) 16 Figure 1.21: Consumer price inflation (%) 17 Figure 1.22: Contributions to CPI inflation 17 Figure 1.23: Real effective exchange rate (index) 17 Figure 1.24: Contributions to REER growth 17 Figure 1.25: Private sector credit (% GDP) 18 Figure 1.26: Private sector credit (% GDP) 18 Figure 1.27: Current account (% GDP) 19 F

FAQs

What is the core purpose of the Timor-Leste Public Expenditure Review?

It evaluates macroeconomic conditions and the fiscal system, then reviews revenue, public expenditure, and sector performance to identify reform priorities. The goal is improved spending quality and sustainability.

How does the report assess domestic revenue?

It reviews revenue policy and administration, analyzes trends and composition, and evaluates potential for revenue mobilization. It also outlines main reform priorities and concludes with recommendations.

What topics does the report cover under public expenditure and public financial management?

It examines expenditure levels and budget execution, spending composition and drivers, spending quality, and public financial management. It further connects findings to health and education outcomes, and discusses sustainability, efficiency, and equity.

Jul 19, 2026

3

0

Upload by Genevieve