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difficult action to reverse in the future. This constrained growth in recurrent expenditure is necessary to ensure fiscal sustainability.
Capital expenditures in the CFTL have been reduced in 2015, mainly due to a 29.6 reduction in minor capital spending. The Government made this saving by reviewing minor
capital spending and eliminating wasteful expenditures. This should increase the efficiency of public spending going forward.
2.5.2.1: Salaries and Wages
Salaries and wages expenditures are expected to grow modestly by 4.1, in 2015. The main measures for 2015 are:
. illio to the Mi ist of Edu atio to a ds i easi g tea he s sala ies, particularly for those in remote areas. This expenditure will attract more and better
teachers which will increase the quality of education across the whole country. 2.0 million to the Ministry of Foreign Affairs Cooperation towards increasing foreign
living expenses for Timorese Ambassadors. This will allow them to better represent Timorese citizens and businesses in foreign countries.
1.4 million to PNTL, Ministry of Health and Courts towards supporting the wages of new PNTL members in Australia and Indonesia, as well as midwives and doctors and new
national auditing in the courts. This will encourage skilled workers to join key sectors such as defence, justice and health.
2.5.2.2: Goods and Services
Goods and services is the largest appropriation category in CFTL and will reach 472.6 million for 2015; 7.3 higher than was budgeted for 2014. This section first describes
measures under this appropriation category and it then classifies investments.
Measures
The main measures for goods and services include: 115.6 million to the Ministry of Public Works towards fuel and maintenance of the
electricity generators. Providing electricity throughout the whole country has been one of the Go e
e t s g eatest a hie e e ts a d should u de pi futu e economic development. Ensuring effective maintenance of generators and the regular, adequate
supply of fuel is essential for ensuring a reliable supply of electricity. 20.0 million in legal services. This will contribute to a better functioning public
administration.
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17.8 million in the Ministry of Education towards for the School Feeding program in public schools and for scholarships. Providing children with sufficient and adequate
nutrition will improve both their educational attainment and their health. 15.3 million to the Ministry of Health to buy medicines and food for patients. These
expenditures will help improve the quality of health services provided in the country. 14.5 million for Ministry of Justice towards the program Ita nia Rai and the cadastral
survey. These programs are important for improving land rights in Timor-Leste which will contribute to security and economic growth.
8.5 million for Ministry of Commerce, Industry and Environment towards rice imports and sale of local products. This will support the local rice market, contribute to the
School Feeding and Disaster Relief programs and ensure basic access to food for the population.
7.5 million to the Whole of Government towards paying quotas and for the 2015 census. This survey provides important information on the population and living
standards in Timor-Leste. 5.5 million to the Whole of Government for the Counterpart Fund. This fund pays for
the Go e e t s o t i utio to p oje ts u de take ith development partners that
boost economic growth and reduce poverty. 3.7 million to the Ministry of Agriculture and Fisheries towards the purchase of seeds.
This will contribute to the development of agriculture and improve food security. 3.0 million to the Whole of Government towards reinforcing the tax law. Improving tax
revenues is a central strategy of the Government in order to diversify revenue streams. This expenditure will contribute to this goal and help the Government increase efficiency
of tax administration and collection. 2.0 million for Ministry of Commerce, Industry and Environment for the celebration of
the 500
th
anniversary of Oecussi. 1.8 million to the Ministry of Social Solidarity for entertainment and contributions to
veterans in honour of their sacrifices in achieving independence. 1.6 million to the National Electoral Commission for the Election of the Chefe de Suco
program. Promoting democracy and rural development is of great importance to the Government in order to ensure growth which is inclusive and also to maintain security
across the whole territory. 1.5 million to the Ministry of State Administration for the election of community
leaders. Strengthening the local communities will contribute both to rural development and also to security.
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1.5 million to the Whole of Government for the CPLP. This money with assist Timor- Leste during its presidency of the CPLP and promote dialogue and trade between
Portuguese speaking countries. Timor- Leste s leadi g ole i the CPLP ill allo it to
further influence the global community. 1.4 million to the Ministry of Agriculture in support of agricultural groups. Promoting
local production is a priority for the Government and will help ensure sustainable access to food.
1.3 million to the Ministry of Transport and Communication towards fuel for the Berlin Nakroma. This expenditure will contribute to better transport, which is an important
pa t of the Go e e t s e onomic growth strategy.
1.2 million for the Presidency of the Republic in order to promote and support rural communities.
1.0 million for the Ministry of Justice towards biometric passports. This expenditure will make travelling abroad easier for Timorese citizens.
1.0 million towards the Growth Triangle Program between Indonesia, Timor-Leste and Australia. This expense will contribute towards better relations with neighbouring
countries, which will foster trade and closer regional ties.
Investments
The Government considers that many expenses under CFTL goods and services are investments that contribute towards development. More specifically 43.0 of total goods
and services expenditures in CFTL are classified as physical, social or human capital investments.
Physical Investments
Physical investments total 129.1 million, 27.3 of CFTL goods and services expenditure. This includes the counterpart contribution, purchase of seeds, fuel and maintenance for the
generators and fuel for the Berlin Nakroma.
Social Investments
Social investments have direct positive outcomes for the welfare of the population. These total 73.5 million, which is 15.6 of total expenditure on goods and services. The larger
measures classified as social investments are the import of rice, the School Feeding program, the cadastral survey, the community support and community leadership
programs, activities for Timor´s 500
th
year anniversary of Oecussi, food and medicines for patients, geometric passports, contributions to the veterans and the census.
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Human Capital Investments
Human capital investments increase the qualifications and productivity of the workforce. Of CFTL expenditure on goods and services, 0.8 million are considered to directly contribute
to the development of human capital. These include programs for teacher training and vocational education.
2.5.2.3: Public Transfers
