The development objective of the proposed activity is to improve the quality of public spending in Timor-Leste through an evidence-based assessment of the efficiency and effectiveness of public expenditure on education and health.

This activity entails the production of a Public Expenditure Review (PER) to inform government decisions regarding the strategic prioritisation and resource allocation in the education and health sectors (in the context of the preparation of the state budget) with a view to improving service delivery and human development outcomes.

In particular, the activity will provide an assessment of the medium-term macro-fiscal framework, an overall public expenditure analysis, a comprehensive analysis on the efficiency and effectiveness of public spending in education and health, and an investigation of relevant financial management systems and institutions with a view to improving planning, budgeting, and spending. The analytical work will be presented as a PER report, summarised in a PowerPoint, and presented at targeted workshops/seminars to disseminate the key findings and recommendations to relevant stakeholders.

The activity also envisages building the capacity of the Ministry of Finance to conduct public expenditure analysis and enhance staff’s ability to plan and critically analyse budgets. It will also attempt to institutionalise PER as part of the Government’s budget process, by providing on-the-job training.

The main counterpart for this activity is the Ministry of Finance, which will coordinate work with the Ministry of Education and the Ministry of Health. This activity will be implemented in close collaboration relevant Global Practices (GPs) – including Education; Health, Nutrition and Population; Governance; and Poverty. It will also build on the existing analytical works that has been carried out in Timor-Leste.

PER Report