The document outlines Timor-Leste's implementation of a Budgetary Governance Roadmap from 2017 to 2021. The roadmap was finalized in December 2016 and approved by the Council of Ministers in March 2017. It covers reforms over five years according to OECD principles of budgetary governance. Implementation began in April 2017 but has faced challenges due to political uncertainty slowing progress of the reform working group and policy papers. Key challenges include socializing the roadmap with development partners and aligning it with other strategies.

1. TIMOR-LESTE IMPLEMENTATION OF BUDGETARY
GOVERNANCE ROADMAP 2017 - 2021

2. • December 2016: Draft Roadmap finalised
• January – February 2017: Draft Roadmap was sent to all stakeholders
(Government, Parliament, Civil Society, Development Partners) for comments
• March 2017: Presentation to Council of Ministers:
• Final Draft roadmap
• Resolution for the PFM Working Group (oversight role on implementation)
• Approved by Council of Ministers on 7th March 2017
• Implementation commenced April 2017
UPDATE ON BUDGETARY GOVERNANCE ROADMAP -
SINCE DECEMBER 2016

3. • Covers 5 year period 2017 – 2022
• Prepared through wide consultation with all stakeholders and support from
OECD
• Roadmap to modernise Timor-Leste’s PFM systems in accordance with the
OECD’s ten principles of good budgetary governance
• Defines:
 Core Reforms (Program and Performance Budgeting/Medium Term Expenditure
Frameworks/Multi-year budgeting)
 Broader Budgetary Reforms (Internal Audit/FMIS/M & E/Accrual Accounting/Reporting)
 Supportive Public Governance Reforms (Human Resources/Institutional Management)
RECAP OF BUDGETARY GOVERNANCE ROADMAP

4. CURRENT STATUS - 2017 IMPLEMENTATION PLAN
Reform Area Status
PFM working group to oversee implementation of roadmap PFM Working group functioning:
• Members nominated
• Terms of reference (rules) for working group approved
• Detailed Implementation plan completed and costed
• Four meetings held April – July; Terms of reference for
Secretariat prepared
Socialisation of Roadmap Information and roadmap shared with central agencies and
development partners
Roll out Phase 2 of Program Budgeting Completed for all Line Ministries (except Ministry of Finance),
Autonomous Agencies and Municipalities
Policy papers: Creating a multi-year link between plans and
resourcing (MTEF), Gender responsive budgeting, M&E, Internal
Audit, Fiscal Rules, Accrual Accounting
Policy papers drafted for discussion:
• MTEF; Gender responsive budgeting;
• Initial discussion paper on accrual accounting
• Development partners approached to assist in recruiting M
& E Advisor to develop framework and capacity building
plan

5. CURRENT STATUS - 2017 IMPLEMENTATION PLAN
Reform Area Status
Updating Budget and Financial Management Law 13/2009 Initial scope for PFM Law update completed by UPMA. Sub-
committee to be appointed – draft law to be prepared 2018
Update Strategic Development Plan Evaluation of SDP implementation undertaken and areas for updating
identified. Expect to take place 2018
Commence Expenditure data analysis Funding secured for OECD to begin early 2018 (depending upon
political situation)
Determine FMIS requirements to implement reforms Initial scoping undertaken – full user requirements to be completed –
move to 2018
Prototype currently been developed – based on user requirement will
be converted to web based.
OECD to review implementation and assist in updating of Roadmap Due to current political situation and the resulting slow

6. • Socialisation of the roadmap has been difficult, with some Development Partners continuing to
work with central agencies to develop other roadmaps rather than using this roadmap.
• Aligning the Budgetary Governance Roadmap with other existing roadmaps i.e. SDG roadmap
and Fiscal Reform
• Current political situation has created uncertainty on the timing and engagement for
implementation of the reform program. This has led to a slower than expected progress, in
particular the functioning of the PFM working group:
 Proved difficult to get the PFM Working Group to meet – co-chaired by UPMA and Ministry of Finance
 Budget for implementation plan – this has slowed down the recruitment of the PFM Secretariat and the
M & E advisor
 Policy papers have been prepared but not yet discussed or approved due to the PFM working group not
meeting
 Sub-working groups have not been appointed by the working group and this has resulted in delays in
policy papers and implementation plans being prepared i.e. accrual accounting
KEY CHALLENGES IN IMPLEMENTATION 2017

7. • OBJETIVU SAIDA MAK GOVERNU IDA NE’E ATU HETAN
DURANTE TINAN LIMA OIN MAI?
We have faced challenges, the biggest being our current political situation and
the uncertainty that has created for decisions on reforms. However, we have
commenced implementation of the reform and it is clear that the reform
program has been accepted by all stakeholders. We are confident that we will
move ahead with the reform, even though it may be at a slower pace than we
expected.
But slow and steady will win the race!!
CONCLUSION

8. OBRIGADU/THANK YOU
Q A
THANK YOU/ OBRIGADO