Thursday, November 25, 2010

Timor Leste Budget Time Table

An aggregate fiscal envelope for the budget year and fiscal envelopes by line
ministries and main economic expenditure categories are set annually; changes from
year to year are mainly incremental with few adjustments to reflect the changing
government priorities. In May, the MOF prepares the fiscal envelopes based on the macroeconomic projections and national priorities. The allocation of aggregate fiscal envelope between recurrent and capital
budget is not based on a clearly defined methodology, and the capital budget fiscal envelope
is not allocated to the line ministries individually. Both aggregate and detailed fiscal
envelopes are discussed and endorsed by the COM, followed by the issuance of instructions
in the budget circular to the Organs of State12 to submit their capital budget projects by mid-
June and recurrent budget proposals by end-June. The circular provides guidelines on the
preparation of annual action plans (AAPs), capital projects, new initiatives, and includes
fiscal envelopes of recurrent budgets by line ministries. The MOF provides the unit costs for
formulation of certain expenditures as supplementary guidelines. Line ministries generally
submit budget requests above the provided fiscal envelopes; in 2009, the requests were on
average 35 percent higher.

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