According to a Council of Ministers press statement issued after the May 13 meeting, the amendment would increase the total consolidated 2026 General State Budget to about US$2.39 billion.

The government said the additional funding was needed to “mitigate the economic impact of rising international fuel prices”, particularly given Timor-Leste’s heavy dependence on imported fuel and food products.

The proposal also includes costs linked to Timor-Leste’s presidency of the Community of Portuguese Language Countries (CPLP) and spending requirements for the Oé-Cusse Ambeno Special Administrative Region, according to the government statement.

Prime Minister Kay Rala Xanana Gusmão and Finance Minister Santina Cardoso formally delivered the proposal to Parliament President Maria Fernanda Lay on May 15, government and parliamentary statements said.

Government projections cited in the proposal estimate annual inflation will rise to 2.2% in 2026, compared with 1.2% in 2025, although authorities said fuel stabilisation measures were expected to limit sharper price increases.