Budgetary Prioritization for Nature-Based Solutions in Timor-Leste: A Com-parative Analysis of Public Expenditure in Key Ministries

Teresa Freitas Belo; Desni Mariani Oematan; Maria G. Vong Seran

doi:10.51703/bm.v7i0.247

Teresa Freitas Belo Lecturer of the Finance Management Department, Dili Institute of Technology, Timor-Leste
Desni Mariani Oematan Lecturer of the Finance Management Department, Dili Institute of Technology, Timor-Leste
Maria G. Vong Seran Lecturer of the Finance Management Department, Dili Institute of Technology, Timor-Leste

DOI: https://doi.org/10.51703/bm.v7i0.247

Keywords: Nature-Based Solutions, Public Budget, Fiscal Prioritization, Health, Agriculture, Infrastructure, Climate Resilience.

Abstract

This study investigates how Nature-Based Solutions (NbS) are prioritized within Timor-Leste's public finances by looking at spending from 2019 to 2024 across four important ministries: Health, Agriculture and Fisheries (MAF), Public Works (MOPW), and Finance (MoF). The study uses a mixed-methods approach, combining qualitative descriptive analysis with quantitative analysis of secondary data sources, including national statistics, international reference frameworks (WHO, FAO, UNDP, UNEP, World Bank), and the General State Budget (OGE). The budgetary capacity and institutional preparedness for integrating NbS were evaluated by comparing budget allocations to key health and environmental indicators, including child malnutrition, maternal mortality, access to sanitation, malaria incidence, and forest cover. The results show that infrastructure is a major focus. With implementation rates as high as 90%, the MOPW consistently received the largest allocations (USD 138–234 million annually). However, less than 5% of spending went to vital NbS-related sectors like housing, water, and sanitation, with the majority going toward energy and transportation. MAF financing varied from USD 7.6 to USD 28.8 million, with implementation rates of 70–95%, despite minor investments in forestry, watershed management, and food security. Despite a lack of financing that hindered NbS-related and preventative actions, the Ministry of Health managed USD 60–80 million annually. There was still minimal cross-sector integration, notwithstanding the MoF's influence on budgetary governance. The continuing problems of child hunger, forest destruction, and sanitation coverage below 60% have not been resolved by modest budget increases.

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