The Timorese Government has prepared an urgent six-measure package, worth around US $ 200 million (€ 167.4 million), to respond to the current economic, social and humanitarian impacts of the pandemic, according to government sources.
The measures include renewing business support given last year, at the beginning of the pandemic, with the figure representing a percentage of workers’ wages, a percentage of spending on electricity and a percentage of spending on rents.
This measure, with an initial expected duration of three months, will also include support for informal workers, such as public transport drivers, among others, explained the government sources.
The credit moratorium measure and the supplement for frontline workers will also be renewed, in this case possibly until the end of the year or, in the case of the supplement, while “justifying and continuing the state of emergency”.
Although the final cost tables are still being finalized, about half of the total value of the package of measures is intended for the renewal of the three measures to support companies, a credit moratorium and a supplement for frontline workers.
The package of measures also includes several expenses related to combating covid-19, including the acquisition of vaccines and test material and the increase in the capacity of the isolation and quarantine sites.
Finally, the payment of the outstanding debt related to the Basic Basket measure will be made.
Teams from various ministries have been working “intensely” in the past few days to close the measures, with meetings still taking place today.
A source from the Ministry of Finance confirmed to Lusa that the objective is to finance expenses “without requiring an additional withdrawal from the Petroleum Fund” and instead using balances that were not used in 2020 and the reallocation of expenses.
These balances, such as the remaining amount in the Covid-19 Fund or funds that were not used in the initial business support measures, as well as endowment transfers, will help to finance the measures.
The solution, the sources explained, was found to overcome the difficulties of the Government currently having liquidity, but not being able to apply it because there are no appropriations for this purpose.
One such example is the payment amount for the basic basket that is in the Covid-19 Fund, it was not executed as planned in 2020, but formally it could not be used this year because it was not budgeted.
The same source explained that the measures will not affect the planned schedule of withdrawals from the Petroleum Fund to finance the Treasury account – in February, 200 million dollars were transferred – and that they will be done as needed.
The package of urgent measures was designed and finalized in the last few days and is expected to be approved next week by the Council of Ministers.
The measures cover economic, social, humanitarian support and reinforcement of the conditions of the front line to combat the pandemic, as the Prime Minister, Taur Matan Ruak, detailed last week.
This is an adjustment to this year’s public accounts, which were conceived in a scenario of recovery, conditioned by what is being the worst period ever of the pandemic in Timor-Leste and the need for a “stabilization” response.
On Wednesday Taur Matan Ruak explained that it is a response both in terms of fighting the disease and for social and economic support, and that it covers “the reinforcement of the Covid-19 Fund and support for frontline groups and teams in the ground for them to continue working “.
“Logistical support is needed so that when they leave the field there are no problems and they can work better,” he said, referring that it is necessary to extend this reinforcement to respond in several municipalities in the country.
It is still necessary, he stressed, an “additional budget” for the “economic and social intervention and the humanitarian support that is needed”, at the present moment.
Finally, the additional budget will make it possible to intensify the issue of vaccination, a process that “is not easy”, but in which the Government continues to work, explained the Prime Minister.
To Lusa, the Minister of the Presidency of the Council of Ministers, Fidelis Magalhães, said that the Ministry of Finance designed the quickest and most effective solution to finance the measures.
The measures involve, among others, the Ministry of Finance, the coordinating ministries for Economic Affairs, Health, Social Solidarity, Higher Education and Education.