Luta Hamutuk in this opportunity would like to convey its
appreciation as well as opinion toward State General Budget 2012, which
have been submitted already by the government toward National Parliament
on September 30th 2011. Within this proposal expenditures is written
around US$1,763.4 million, almost 2 Billions if
compared with annual budget of 2011, which only estimated around
US$1,306 million. This budget within for this specific year considered
as significantly increasing around 35% if compared with 2011. It is
assumed that such huge of budget, will become truly significant if this
also be able to resolve national problem which have been encountered by
people, therefore we will wait for the impact from such budget.
Based
on our monitoring and observation activity in districts as well as
villages and sub-villages, different preoccupations were raised in
respect of budget in 2011, and mostly within dissatisfaction toward the
impact of budget among communities. We already knew that budget have
been regularly increasing every year since 2006 and haven’t been able to
resolve problem such as poverty. Unfortunately, this condition
becoming worst among the poor who consider as majority in its number,
while other small of groups becoming more wealthy each day. Recently,
preoccupation and situation have been showed obviously that, food prices
are expensive and couldn’t be afford by people, lack of facilities such
as water and sanitation, public transportation cost becoming high, lack
of facilities within schools, less function within health post,
mini-market haven’t been use properly as there wasn’t any good of plan
upon such facility, insufficient condition of irrigation and people’s
housing still below the standard of the objective of Millennium
Development 2015. Ironic, while such huge of budget being allocated to
develop nation, however it is fail to change the situation and people
still have to encounter with difficulties on daily basis.
Based
on this fact, and through this press release, Luta Hamutuk would like
to strongly remain state entities that, the addition of number within
budget proposal 2012 which up to 35% should accompanied by the
estimation of its direct impact toward people, its quality of execution
and project, effective control, transparency and should be based on
certain law in its implementation. We couldn’t just let such money from
Petroleum Fund would only benefit toward certain group while the
majority of people still struggle for their daily life.
If
we observe on the addition process of budget since 2006 (US$328.6
million) until 2012, the percentage has reach 500%, during 7 years.
Actually, such huge of budget should have been able to show its
implication and changes within people’s life. However, reality shows as
well that, basic problem and basic needs of the people haven’t been able
to resolve.
In relation with the State General Budget
Proposal 2012, Luta Hamutuk would like to convey its general
appreciation and opinion as well, like the following:
1. Execution report of buget had never been accompanied by a standard or platform which should to attempt by the government: ask
the government to provide execution report of budget along with its
indicators which have been already attempted, therefore been able to
accompanied in respect of its impact toward people’s neccesities in the
future.
Based on monitoring which had undertaken by Luta
Hamutuk, this could finally discover that the execution report of budget
always shows only on the number of expenditures, and never accompanied
by explanation of standards being attempted, also without indicator and
measurement toward its implication on people’s life.
Therefore,
we ask the government, prior to submit new proposal of budget, they
should convey execution report of budget along with its standard and
indicators which should to attempt. Without such explanation, it will be
difficult for us to understand the progress from such investment of
budget. We will never know on the impact from budget which have been
used by the government, changes which people have been experienced from
such investment and future of plan aim to accomplish prior investment.
Instead, we only comprehen that the implication is that, the allocation
of such budget is increasing every year, however people have never been
experience its benefit.
2. The Proposal of Budget 2012 have been taken over Estimation of Sustainibilty Income (ESI) 3% from Petroleum Fund: within
the proposal of budget 2012, the government had taken this budget over
Estimation of Sustainibilty Income ESI, around US$908 million.
Based
on ESI 3%, the government is allowed to take around US$665,3 million,
however this number had increased up to US$1,573.3 billion. This signify
that the government had showed indiscipline in utilizing Petroleum Fund
in a proper manner. Timor Leste has strong indication to be totally
depend on oil and gas sector, as 90% of state income is coming from
Petroleum Fund. Such figures or performance have been practiced since
2008 to date, and affected already on the sustainability and the
existence of petroleum fund.
Luta Hamutuk remind
state bodies that, if in-discipline is maintained being practise toward
the utilizing of Petroleum Fund, such fund will be in trouble in coming
short period of 15 -20 years. In addition, the investment which recently
being implemented had considered as below certain standard and in the
future this condition will need huge of maintenance cost, as consequence
this country will colaps.
3. People’s basic necessity should become the highest priority: proposal of budget 2012 don’t show significant allocation toward people’s basic necessities.
This
year, food prices are consider high and can’t be afforded by people
which cost in hunger epidemic. Meanwhile, water and electricity become
as important priority and obligation to be resolved immediately. We
can’t just let the people waiting until they really suffer from
mal-nutrition, mal-hygiene and long live in poverty, while money have
been constantly coming from their natural sources of oil and gas and
have been reached almost US$9 billion.
The state
has huge of income from oil and gas sector, and during the past 4 years
have been taken such budget over ESI 3%, however this haven’t been able
to improve people’s condition of life, the problem never being resolved
and the poor condition of the people now just like a good song for their
own leaders.
4. The Number of Budget 2012 do not Reflect the Capacity of the Government: execution within 2011 had showed incapacity within government, therefore irrational if they would take more budget for 2012.
Based
on observation as well as analysis toward actual execution 2011, from
January-October, the government have only been able to execute around
US$712 (55%) million from US$1,306 billion of total budget. Therefore,
there are still around US$594 million (45%) to be executed by the
government within only two months. Such flaw within the execution
capability will burden the government if budget is being added for 2012.
Luta
Hamutuk would like to stated that, such addition around 35% for 2012
aim to resolve certain problem encountered by the community, is needed
for reorganizing as well as discipline among ministries to be able to
implement strategic projects under its own departments. Meanwhile,
synergistic and integral of services should to practice between
ministries, therefore able to attempt state expectation. This needed as
well adequate coordination of mechanism, cooperation with local
authorities within controlling process, facilitate access for contracts
document, and the ministries should to comply with orientation given by
the head of government therefore, people will benefit from such
development.
5. Luta Hamutuk reject loans of plan within proposal of budget 2012, which estimated around US$33,1 million:
there insn’t any strong of reason for the government to take a loan
when budget still sufficient in number to undertake development.
Based
on incapacity among the government to execute budget properly, and the
quality of implementation, we think that the government shouldn’t make
situation more complicated, especially in respect of state general
budget. We ask the government to focus on the existence of budget
therefore people could benefit from it, while give opportunity as well
toward government to improve its execution capability.
An
intention of the government to take a loan even in small number and
using Petroleum Fund as a guarantee, will prejudice government’s
concentration, in addition if control system do not practice properly,
this will affecting future generation and ended with country’s
dependency on international debt which can bring this country to be
collapse as current good system of petroleum fund and others financial
system have been constantly violated by the government.
Thank you for your attention!
Dili: October 12nd, 2011
Mericio Akara
Director of Luta Hamutuk
Tel: 7263783
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DILI-Organizasaun naun Governamental Luta Hamutuk fo kapasitasaun ba Fokal Point konaba Fundo Minarai no Orsamentu Jeral do Estado atu iha kuinesementu diak.
