The Timor-Leste Public Expenditure Review (PER) aims to support the Government of Timor-Leste in identifying key constraints to efficient and effective public spending and offer ways to improve the spending quality to achieve the country’s development objectives.
Key Findings
Accelerating and sustaining economic growth is key to reduce poverty and raise living standards in Timor-Leste.
High public expenditure levels with limited domestic revenues brings a large budget deficit which threaten fiscal sustainability and endanger macroeconomic stability.
Domestic revenues are very low by international standards and need to be improved.
The government expenditure levels have been among the highest in the world over the past decade.
Enhancing the efficiency and effectiveness of public spending is essential to improve the impact of fiscal policy.
An increase in health spending over the years has enabled critical investments in the health sector but it has not translated into markedly better service availability and quality.
Increasing the efficiency and effectiveness of public expenditure will be crucial to improve the provision of health and nutrition services and create fiscal space for more productive spending.
Significant efforts have been made to rebuild the education system and improve access to education, but the spending on education has not translated into commensurate improvements in learning outcomes.
Improving the allocative and technical efficiency of public spending on education would help boost learning outcomes.
