Dili, East Timor, 13 Jan – The prime minister of East Timor, Xanana Gusmão, said Wednesday at the country’s parliament in Dili that there are plans to diversify the Oil Fund’s investment portfolio.
On presenting the State Budget for 2011, Gusmão said that diversification would be through, “a range of assets, regions and currencies, in order to reduce risks and increase expected returns.”
According to the prime minister, estimated oil revenues for 2011 and 2012 are, respectively, US$2.2 billion and US$2.4 billion and Estimated Sustainable Income (income transferred from oil revenues to the state budget) will be US$734 million in 2011, a rise of US$232 million against 2010, in which it totalled S$502 million.
East Timor’s total expenditure for 2011 is estimated at US$989 million and total non-oil revenues are estimated at US$110.4 million.
“The non-oil fiscal deficit is thus US$875 million, of which US$734 million will be funded by the Oil Fund and US$141 by the East Timor Consolidated Fund,” he said.
Gusmão said that two special fund would be set up to “ensure better coordination of investment and development projects.”
“Thus, and of the total budget of US$895 million for 2011, US$317.306 million is linked to the Infrastructure Fund and US$25 million to the Human Capital Development Fund,” he noted. (macauhub)