ECONOMIC AND FINANCIAL ORGANISATION
The economic organisation of East Timor shall be based on the combination of
community forms with free initiative and business management, as well as on the
co-existence of the public sector, the private sector and the co-operative and
social sector of ownership of means of production.
1. The resources of the soil, the subsoil, the territorial waters, the
continental shelf and the exclusive economic zone, which are essential to the
economy, shall be owned by the State and shall be used in a fair and equitable
manner in accordance with national interests.
2. The conditions for the exploitation of the natural resources referred to
in item 1 above should lend themselves to the establishment of mandatory
financial reserves, in accordance with the law.
3. The exploitation of the natural resources shall preserve the ecological
balance and prevent destruction of ecosystems.
The State shall promote national investment and establish conditions to
attract foreign investment, taking into consideration the national interests, in
accordance with the law.
Ownership, use and development of land as one of the factors for economic
production shall be regulated by law.
FINANCIAL AND TAX SYSTEM
The structure of the financial system shall be determined by the law in such
a way as to guarantee that savings are encouraged and built up with security and
that the financial resources necessary for economic and social development are
1. The State shall establish a national central bank jointly responsible for
the definition and implementation of the monetary and financial policy.
2. The Central Bank functions and its relationship with the National
Parliament and the Government shall be established by law, safeguarding the
management autonomy of the financial institution.
3. The Central Bank shall have exclusive competence for issuing the national
1. The State shall establish a tax system aimed at meeting the financial
requirements of the State and the fair distribution of national income and
2. Taxes shall be established by law, which shall determine the
incidence, tax benefits and the guarantees of taxpayers.
1. The State Budget shall be prepared by the Government and approved by the
2. The Budget law shall provide, based on efficiency and effectiveness, a
breakdown of the revenues and expenditures of the State, as well as preclude the
existence of secret appropriations and funds.
3. The execution of the Budget shall be monitored by the High Administrative,
Tax and Audit Court and by the National Parliament.