[{"bbox": [129, 135, 1130, 190], "category": "Text", "text": "the domestic resource mobilization, the consolidation of programme budgeting and the fiscal decentralization, the latter in connection with the administrative decentralization."}, {"bbox": [129, 208, 1131, 387], "category": "Text", "text": "When the PFM reform action plan is approved, the present Action will support its initial implementation, assisting the government to put in place the reform coordination and monitoring mechanisms through technical assistance to be delivered to relevant Directorates of the Ministry of Finance, envisaging also the implementation of climate and gender PFM reforms. The Technical Assistance (TA) does not intend to replace the administration's functions and responsibilities. It will rather provide strategic advice on the implementation of the reform in specific domains."}, {"bbox": [129, 404, 1130, 490], "category": "Text", "text": "The specific objective (outcome) of this action is to Strengthened domestic and other revenue mobilisation, public expenditure management and increased transparency, efficiency and effectiveness of public expenditure for the benefit of all."}, {"bbox": [129, 508, 1131, 688], "category": "Text", "text": "The expected outputs to be delivered by this action contributing to the specific objective are (i) PFM Reform Action Plan launched and initially implemented, with a special attention on gender, climate change adaptation and digital transformation, (ii) Tax Authority reinforced, through the development of a people-centred tax system and administration, (iii) System of gender-responsive planning, programming and budgeting harmonized, articulated and streamlined in line with the new budget framework law, and (iv) Fiscal decentralization strategy elaborated and approved."}, {"bbox": [129, 704, 1131, 945], "category": "Text", "text": "The Action contributes directly to the attainment of the SDG objective \"16. Peace, justice and strong institutions\", which highlights the purpose of improving transparency and effectiveness of the public administration as well as the gradual decentralisation of planning and budgeting to the municipal level. It will also contribute to the attainment of the SDGs \"1. No poverty\", through the setting up of planning and budgeting systems that will address the provision of public services to the population, in particular to those living in vulnerable situations, \"5. Gender equality\", through the inclusion of this dimension in the PFM reform goals and budget systems, and \"17. Partnerships for the Goals\", focusing on the international cooperation and partnership supporting PFM reforms in a coordinated and complementary manner."}, {"bbox": [129, 960, 1133, 1171], "category": "Text", "text": "The Action will address the EU objectives underlying its cooperation strategy, namely climate change, green economy and digitalization by mainstreaming those domains into the public finance reform process. And in light of the Gender Action Plan III – 2021-2025, and specifically the Country Level Implementation Plan, which reflects the key findings and recommendations of Timor-Leste gender analysis, this action will contribute to accelerate progress towards gender equality and Timorese women’s and girl’s empowerment and provide specific support to the Government and to the Ministry of Finance so their plans may reflect also concrete actions that contribute to gender equality and women’s empowerment in the country."}, {"bbox": [129, 1202, 360, 1234], "category": "Section-header", "text": "## 2. RATIONALE"}, {"bbox": [129, 1262, 293, 1289], "category": "Section-header", "text": "### 2.1. Context"}, {"bbox": [129, 1308, 1131, 1428], "category": "Text", "text": "The EU has been supporting the government of Timor-Leste in carrying out Public Finance Management reforms since 2014. A budget support operation, under the 10th EDF, totalling EUR 3 million, follows previous interventions under the project approach modality. The objective of this program was to improve the PFM system focusing on domestic revenue mobilization through customs and tax administration strengthening."}, {"bbox": [129, 1444, 1131, 1624], "category": "Text", "text": "Under the 11th EDF, the support for the PFM reform continued with the Sector Reform Contract \"Partnership to improve service delivery through strengthened Public Finance Management and Oversight (PFMO) - 2018-2022\" (EUR 30 million). This contract includes two components: i) Component 1, budget support to strengthen the effectiveness, integrity, transparency, accountability, citizen-orientation, and control of public finance management for an amount of €17 million; ii) Component 2, under the Complementary Measures, totalling EUR 13 million, indirectly managed by Instituto Camões, the Portuguese cooperation agency, to support the"}, {"bbox": [545, 1666, 650, 1690], "category": "Page-footer", "text": "Page 4 of 21"}]