Dili, May 22, 2026 (Lusa) – The Timor-Leste Institute for Development Monitoring and Analysis, the La'o Hamutuk (Walking Together in English) institute said on Friday that the government's proposed amending state budget shows the country's import dependence and structural vulnerability.
"The amending proposal reflects Timor-Leste's structural vulnerability, alongside the need to allocate a significant budget amount for fuel reserves, fuel subsidies and rice reserves, confirming that Timor-Leste remains heavily dependent on imported fuel and food," the institute said in its opinion sent to parliament.
Timor-Leste's parliament started public hearings on Thursday on the proposed amending budget for 2026, which increases spending to ensure energy and food security.
The government's proposed amendment increases the general state budget by $101.1 million (about €87 million), raising it from $2.291 billion (about €1.9 billion) to $2.392 billion (about €2.06 billion).
"The need to allocate about $174 million [€149.8 million] to the National Strategic Fuel Reserve and $42 million [€36.17 million] for fuel subsidies demonstrates a heavy reliance on imported fuel," La'o Hamutuk said.
The institute said increasing the rice reserve also demonstrates that "national food security remains dependent on external suppliers."
La'o Hamutuk said a serious discussion on the global energy situation is necessary and must link to a gradual transition plan toward solar, wind and other energy sources, because without this reform, "Timor-Leste will remain vulnerable to every global oil crisis."
The institute said increasing rice reserves does not equate to "food sovereignty."
"Food sovereignty requires sustainable local production, irrigation, local storage, technical assistance, adapted seeds, sustainable fishing, agroecology, family farming and rural agro-industry," La'o Hamutuk said.
The institute warned in its opinion that "food import dependence could become a threat to social and economic stability if global markets suffer prolonged disruptions."
La'o Hamutuk also called for a re-evaluation of infrastructure projects that do not directly serve the population's needs.
"Parliament must re-evaluate, cancel or postpone non-urgent projects, such as Tasi Mane (a large-scale petroleum infrastructure project), airports and other projects that lack clear confirmation of public benefit, increase long-term fiscal pressure, or depend on extractivist models and fossil debt," the opinion states.
"This crisis must provide an opportunity to change national priorities, moving from large infrastructure to economic and social resilience," it added.
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