To achieve the SDGs and the country’s Strategic Development Plan goals by 2030, Timor-Leste needs to overcome two main challenges: (a) the lack of an existing national, holistic and integrated system of financing for the SDGs; and b) non-diversified development financing that is heavily reliant on the Petroleum Fund. The INFF process is helping the government tackle these challenges, improving governance and coordination, and supporting the identification of innovative financing options and opportunities.
Based on the priority areas identified in its development finance assessment, the Government of Timor-Leste is developing a strategy to finance sustainable development at both sectoral and national levels. Ongoing work has already delivered results: the first National Diaspora Engagement Policy and Remittance Mobilisation Strategy have been launched, embedding diaspora finance as a key contributor to national development; pro-health tax measures were successfully integrated with the national budget, helping to reduce the prevalence of a number of non-communicable diseases; and climate tagging has been introduced, enhancing the transparency of climate finances, climate accountability and the potential to mobilise additional climate finance.
