The budget surplus in Timor Leste (East Timor) is expected to “fall significantly” in 2014 due to a drop in oil revenues and high public spending, according to a report from the Asian Development Bank.
In a report about the fiscal challenges of the Asia-Pacific region in the next year, the bank said that total expected revenues for 2014 would drop to US$1.4 billion, which is in line with the figure included in the 2014 state budget by the country’s government.
“Revenues expected in 2014 are a drop of 41 percent to US$1.4 billion,” the document said adding that oil revenues from Kitan and Bayu Undan would fall in the mid-term after reach a peak in 2012.
Public spending is also expected to increase by 22.3 percent due to salary increases, acquisition of goods and services as well as increases in social assistance programmes for veterans, the elderly and single mothers.
The Asian Development Bank report concludes by noting that the Timor Leste economy continues to grow but is showing signs of slowing down. (macauhub)