7.6 9.3 10.6 2.6 BB1 2016 English 15.2 Final Final

Page | 62 2014 Actual 2015 BB1 Rec 2016 Projection 2017 2018 2019 2020 Total Autonomous Agencies

6.4 7.6

8.6 9.3

9.9 10.6

11.2 Administrations of Ports of Timor-Leste 4.7 5.4

4.7 5.2

5.6 6.0 6.4 National Communication Authority - - 0.0 0.0 0.0 0.0 0.0 National Defense Institute - - 0.0 0.0 0.0 0.0 0.0 National University of Timor Lorosae - - 0.7 0.7 0.8 0.9 0.9 Infrastructure Fund - - 0.0 0.0 0.0 0.0 0.0 Source: National Directorate of Economic Policy, Ministry of Finance, 2015

2.6.3: Petroleum Revenues and the Petroleum Fund

The petroleum revenues currently finance most of the state budget. The Petroleum Fund shall contribute to a wise management of the petroleum resources for the benefit of both current and future generations. 2.6.3.1 Inflows of Petroleum Revenues The factors driving the inflow of petroleum revenues are prices, production and costs. Compared with the Budget 2014 and 2015, the oil price in this budget is significantly lower over the forecasting period. The total costs are slightly higher and there is also a slight change in production. As noted in previous budget documents, petroleum revenues from Bayu-Undan and Kitan peaked at 3,559.1 million in 2012 and are now forecasted to decline. The revenues declined by almost half in 2014 to 1,817 million compared to 3,042 million received in 2013. The expected revenue in 2015 was revised down from 1,374.3 million to 861.9 million see Tables 2.6.3.1.1 and 2.6.3.1.2. Page | 63 Table 2.6.3.1.1: Petroleum Revenues from Bayu-Undan and Kitan 2014-2020 m 2014 Actual 2015 Estimate 2016 Budget 2017 2018 2019 2020 Total Petroleum Fund Revenue 2,318.5 1,394.1 1,593.5 1,268.8 1,257.4 989.8 896.2 Petroleum Fund Investmetn Return 501.6 532.2 874.8 919.6 922.0 883.0 844.6 Total Petroleum Revenue 1,817.0 861.9 718.7 349.2 335.4 106.8 51.6 BU FTPRoyalties 137.7 74.0 64.5 44.7 38.7 23.6 11.2 BU Profit oil 901.4 417.4 327.1 150.3 127.1 35.0 0.0 BU Income Tax 370.1 131.2 104.0 32.2 46.3 0.0 0.0 BU Additional Profit Tax 296.9 156.9 173.9 68.4 81.0 0.0 0.0 BU Value Added Tax 13.4 7.7 7.6