Timor-Leste's Supplementary Budget and National Strategic Fuel Reserve
Timor-Leste Government’s fiscal management in mid-2026 reflects responsiveness to external price shocks and reliance on petroleum fund drawdowns to sustain public spending. In May 2026, Timor-Leste parliament approved the budget proposal in general terms then passed the amended budget on June 2, raising consolidated spending by US$101.1 million to US$2.39 billion to strengthen energy security and mitigate the impact of rising fuel prices.
President Ramos-Horta promulgated the amended budget on June 8. The amendment's centerpiece is a US$174.3 million National Strategic Fuel Reserve designed to secure seven months of electricity supply. This marks a direct hedge against international fuel price volatility alongside a US$42 million household fuel subsidy to cushion cost-of-living pressures on Timorese households.