Timor-Leste - Public Expenditure Review

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00:04 A public expenditure review is a World Bank tool for looking at the state

00:08 of a country's finances.

00:11 It shows us if a country is spending its money wisely

00:15 on services and infrastructure,

00:17 and if they're getting good results for those investments.

00:21 It shows us whether government spending

00:23 is in line with its own development goals.

00:27 And finally it asks,

00:28 does the government have the systems in place

00:31 to monitor and account

00:33 for its citizens,

00:35 government revenue and spending.

00:37 Timor-Leste has been very successful in creating a wealth fund

00:41 from its oil and gas reserves.

00:43 And they have managed to save a large amount of money.

00:47 However,

00:47 the wealth fund will not last forever.

00:50 Our review shows that under current spending patterns,

00:54 the country will run out of money by the end of the decade.

00:58 So therefore,

00:59 two things are critically important.

01:02 Firstly,

01:02 the country must use its treasure wisely

01:05 to support and diversify its economy.

01:09 And then secondly,

01:10 it must use its money much more efficiently

01:14 and effectively

01:15 than we're seeing right now.

01:17 Economic growth has dropped over the last decade.

01:21 Living standards have improved,

01:23 but not everyone has benefited.

01:26 The economy has been supported by strong

01:29 but unsustainable

01:31 public spending.

01:33 High government spending

01:34 with low tax revenues

01:37 has resulted in a large budget deficit,

01:40 which threatens fiscal sustainability.

01:43 Reforms are therefore required to increase domestic revenue

01:47 so that the country can afford its spending and investment needed

01:52 to meet

01:52 Timor-Leste's development goals.

01:54 It is especially important to improve the quality.

01:58 And efficiency

01:59 of public spending

02:01 on health

02:02 and education to improve services

02:05 and boost learning outcomes.

02:07 A healthy,

02:08 skilled and educated workforce is critical for Timor-Leste's future prosperity.

02:15 Timor-Leste has made amazing progress since independence.

02:19 Such as building its electricity grid

02:22 and expanding access to education and healthcare.

02:25 But the country still faces massive human capital and infrastructure gaps.

02:30 Just one example,

02:32 nearly 50% of all children

02:34 are stunted.

02:35 One of the highest rates in the world.

02:38 So the Public Expenditure Review provides the necessary data and analytics,

02:44 setting out very clearly for government decision makers

02:47 and its citizens.

02:49 The present challenge.

02:51 Now is the time to take action.

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A public expenditure review is a World Bank tool for looking at the state of a country's finances. It shows us if a country is spending its money wisely on services and infrastructure, and if they're getting good results for those investments. It shows us whether government spending is in line with its own development goals. And finally it asks, does the government have the systems in place to monitor and account for its citizens, government revenue and spending. Timor-Leste has been very successful in creating a wealth fund from its oil and gas reserves. And they have managed to save a large amount of money. However, the wealth fund will not last forever. Our review shows that under current spending patterns, the country will run out of money by the end of the decade. So therefore, two things are critically important. Firstly, the country must use its treasure wisely to support and diversify its economy. And then secondly, it must use its money much more efficiently and effectively than we're seeing right now. Economic growth has dropped over the last decade. Living standards have improved, but not everyone has benefited. The economy has been supported by strong but unsustainable public spending. High government spending with low tax revenues has resulted in a large budget deficit, which threatens fiscal sustainability. Reforms are therefore required to increase domestic revenue so that the country can afford its spending and investment needed to meet Timor-Leste's development goals. It is especially important to improve the quality. And efficiency of public spending on health and education to improve services and boost learning outcomes. A healthy, skilled and educated workforce is critical for Timor-Leste's future prosperity. Timor-Leste has made amazing progress since independence. Such as building its electricity grid and expanding access to education and healthcare. But the country still faces massive human capital and infrastructure gaps. Just one example, nearly 50% of all children are stunted. One of the highest rates in the world. So the Public Expenditure Review provides the necessary data and analytics, setting out very clearly for government decision makers and its citizens. The present challenge. Now is the time to take action.

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World Bank Timor-Leste PER 2021 T Hill

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World Bank Timor-Leste PER 2021 T Hill

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