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IV CONSTITUTIONAL GOVERNMENT
SECRETARIAT OF STATE COUNCIL OF MINISTERS
Information General
State Budget of 2008 Strengthens National Stability & Prevents Possible Economic Crisis
Dili 25 June 25 2008
The new expenditure of the State General Budget for 2008, submitted by the AMP to the National Parliament, is the result of the government's future policies, particularly the creation of mechanisms for the prevention of a possible economic crisis and the strengthening of current national stability.
The government proposed the amendment of the 2008 budget amounting to 347.7 million USD - approved by the National Parliament on December 31, 2007 - to $ 773.8 million, giving an additional value of 425.5 million USD, 240 million of which is intended directly to the Economic Stabilisation Fund.
The Economic Stabilisation Fund is an important tool that the AMP government created to tackle the economic recession that is felt worldwide, including the food crisis and rising cost of food in the world and, as well as combating the negative effects that the increase in fuel prices and materials of construction reflect at the national level.
The Government is in a situation where it need not wait for urgent support from development partners while the population suffers!
With the creation of the Economic Stabilisation Fund, the IV Constitutional Government follows the recommendations of the Rome Declaration on Food Security, which recently met in the Italian capital - 180 countries plus the European Union and takes measures to prevent a possible economic crisis and ensure the strengthening of National Stability, which could be jeopardised by a serious economic and social crisis.
Strengthening National Stability is therefore another major concern of the AMP Government, which is also reflected in increases in spending for the development of pilot projects which were successful, allowing these to not be suspended for lack of money and ensuring that the population benefits from the results in a shorter space of time that was originally planned.
These are pilot projects in areas such as agriculture - particularly in the production of rice - the repair of roads, through labour-intensive ( "cash for work") and vocational training.
These are projects that can not stop and have been increasing the economic power of local communities.
Other increases are targeted for development in key areas, especially in the electricity sector.
The additional money in the state general budget for 2008 will also provide an extraordinary payment equivalent to one month's salary to all employees of the state, the extraordinary change of subsidies and the creation of other allowances for members of the F-FDTL and the PNTL; and the creation of funds to support the professionals in the public sector, including magistrates, senior officers of health, educational and other technical superiors.
The proposed amendment to the state general budget for 2008 also provides for an increase in public transfers to cope with the increased number of beneficiaries of pensions to the elderly, the payment of pensions to Combatants and the National Liberation Martyrs; assistance to IDPs; additional assistance to the petitioners; support the organization of sports competitions at regional and national levels; support for organizations providing assistance in priority areas of work and strengthening of the "cash for work".
The amending budget allows the creation of funds for, among other things, the implementation of the first phase of studies on alternative sources of energy and needs assessment for the infrastructure of the country, a pilot program of intensive training of teachers, the purchase of medicines and supplies services to hospitals; costs related to the Embassies, present and future; fuel for the generation of electricity; subsidize the costs of operating the Berlin-Nakroma and training of troops of the F-FDTL in China, which will integrate the garrison of Patrol Vessels protection of territorial waters and prevent illegal fishing.
Preparing the future of the nation today, the proposed amendment to the state general budget for 2008 ensures, among others, the first payment of two Patrol Ships to protect territorial waters, the initial payment of the construction of infrastructure for production and distribution of electricity throughout the country and the rehabilitation of over 200 km of rural roads in all districts; funds for the first phase of construction of a complex for recycling of waste oil, construction of eight Regional Agricultural Facilities and Maintenance Centers in the districts, improvement of irrigation systems and other support measures for farmers; temporary facilities for the Customs and Excise and projects of the new design of Comoro Bridge.
In order to implement more effectively the policies that the IV Constitutional Government proposes to implement, the Council of Minister sapproved a change to the regime of General Supplies and Public Procurement, which the competent authorities to authorise the start and award in the procedures of supply.
The Government considers it important to implement some measures of decentralisation of the Ministry of Finance to other ministries and agencies, permitting them to procure supplies themselves.
The AMP government chose the year 2008 as the Year of Reform, preparing the state and its institutions for the challenges that it faces.
This amendment to the state general budget of 2008 prepares today the future of the nation.
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