The Ninth Constitutional Government of Timor-Leste, under the leadership of Prime Minister Xanana Gusmão, convened an Ordinary Meeting of the Council of Ministers at the Government Palace in Dili, marking a significant milestone in the country’s journey toward regional integration and strategic development.
Strengthening Global Financial Engagement
The meeting opened with the approval of a government resolution, presented by Minister of Finance Santina José Rodrigues F. Viegas Cardoso, authorizing Timor-Leste’s additional subscription to shares in the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group.
Timor-Leste has committed to subscribing to:
- 76 additional shares under the 2018 General Capital Increase (Resolution No. 663)
- 89 additional shares under the 2018 Selective Capital Increase (Resolution No. 664)
This step, taken ahead of the World Bank’s October 1, 2025, deadline, reflects Timor-Leste’s ongoing effort to deepen its participation in global financial mechanisms aimed at fostering equitable and sustainable economic growth.
The IBRD supports member countries through financial tools, expert knowledge, and development strategies to help address national and regional challenges. By increasing its stake, Timor-Leste seeks to strengthen its development financing portfolio and bolster its efforts in poverty reduction, environmental sustainability, and infrastructure development.
Ratification of ASEAN Charter and Admission Declaration
A historic decision was made with the Council of Ministers approving two draft resolutions that pave the way for Timor-Leste’s full integration into the Association of Southeast Asian Nations (ASEAN).
Deputy Minister for ASEAN Affairs, Milena Maria da Costa Rangel, presented both resolutions:
- Ratification of the ASEAN Charter, originally adopted in Singapore on November 20, 2007, which enshrines the values of peace, regional stability, human rights, and economic progress among member states.
- Ratification of the Declaration on the Admission of Timor-Leste to ASEAN, pursuant to Article 6(4) of the ASEAN Charter. This declaration represents the political acceptance by ASEAN member states of Timor-Leste as a future member, with the formal signing expected on October 26, 2025, in Malaysia.
The government emphasized that ASEAN accession is a national priority, expressing the sovereign will of the Timorese people to contribute to peace, development, and prosperity in the region. Once ratified, these instruments will ensure that Timor-Leste can fully exercise its rights and responsibilities within ASEAN, enabling active participation in regional forums, economic frameworks, and cooperative mechanisms.
Revision of Strategic Development Plan (SDP)
In a forward-looking move, the Council approved a resolution authorizing the direct contracting of PT Meridian Kreatama Mandiri, in partnership with KIAT, Lda., for the revision of the country’s long-term development framework.
Originally launched in 2011, the Strategic Development Plan (2011–2030) laid the foundation for Timor-Leste’s post-independence socio-economic trajectory. However, with evolving global and domestic challenges, the 9th Constitutional Government has determined the need for a revised Strategic Development Plan 2026–2035.
Given the complexity of this task, the government opted to retain the same experts who designed the initial SDP, ensuring continuity, institutional memory, and efficiency. The value of this contract is estimated at US$784,368, with the appointed firms bringing extensive regional experience in long-term planning and development policy formulation.
Budget Execution and 2026 Fiscal Planning
The meeting concluded with two key presentations by Finance Minister Santina Cardoso and her technical team. The first covered the progress of the 2025 General State Budget execution, summarizing expenditure performance by ministries and autonomous bodies as of July 31, 2025.
The second focused on the Political Revision Committee for the 2026 General State Budget, including:
- Updated instructions for budget preparation
- Clarification of fiscal ceilings and alignment with the Government’s Program
- Emphasis on performance-based budgeting and programmatic focus
- Engagement of line ministries, agencies, and municipalities in the process
The Committee’s timeline was also shared, with discussions scheduled to take place from August 5 to 23, 2025. The goal is to ensure that the upcoming budget aligns with national priorities while being fiscally responsible and development-driven.
A Turning Point in Timor-Leste’s Regional and Economic Ambitions
This Council meeting marks a turning point in Timor-Leste’s international diplomacy and domestic policy planning. From deepening its financial footprint in global institutions like the World Bank to formalizing its long-awaited integration into ASEAN, the Government is signaling a strategic shift toward regional engagement and long-term stability.
With reforms on multiple fronts — financial, diplomatic, and developmental — the 9th Constitutional Government is laying the groundwork for Timor-Leste to emerge as a key actor in Southeast Asia while ensuring inclusive growth for its people.
As the country prepares to celebrate its ASEAN admission in October, Timor-Leste is demonstrating not only its readiness but also its determination to contribute meaningfully to regional peace and prosperity.
