Nasionalizmu Foun Iha Prosesu Dezenvolvimentu Nasional

Nasionalizmu Foun Iha Prosesu Dezenvolvimentu Nasional

*Cosme da Costa Aráujo

Mehi ba ukun-rasik-an laos buat ida fasil. Realista sira iha tempu ne’ebá hateten Timor-Leste mehi mehi ida imposível – mimpi disiang bolong. Maibé, hanesan ita nia Prezidente Nicolau Lobato rasik ho fiar-an dehan “a nossa vitória é certa”, ikus mai liu husi funu ida naruk entre Davíd vs Goliat, Timor-Leste nia mehi imposível ida ne’e sai duni realidade ida laos imposível ona. Istoria hamutuk no hatudu mai ita katak hamutuk ita bele alkansa buat ne’ebé imposível. Biar hasoru susar, terus no mate oin-oin, ita kaer metin nafatin ba espíritu nasionalizmu maubere nian hodi hakilar no moris tuir liafuan “mate ka moris ukun-rasik-an”. Ita bele halo buat sira imposível ne’e, tamba deit “ita hadomi ita nia rai” – nasionalizmu. Ho ida ne’e maka nasionalista sira iha ai-laran, vila-laran no rai-liur la lakon esperansa hodi kontinua funu tuir sira idak-idak nia dalan no kbi’it. Ho ida ne’e mos nasionalista sira barak la monu ba tentasaun sira hanesan “kareta, uma, rupiah, sigaru gudang-garam no supermi”. Ho nasionalizmu ida forte,  ita rezisti para manan –  “resistir é vencer”, hanesan maun Bo’ot Xanana rasik dehan iha tempu ne’ebá. 

Hafoin funu ba “libertar a pátria” remata,  ita kontinua ho funu foun ida seluk “libertar o povo” ba Timor-Leste ida “forte, prósperu no seguru”. Maibé hanesan ita nia Prezidente Taur Matan Ruak rasik hateten “funu ida uluk fasil liu duké funu ida agora”. Funu ida agora – funu ba dezenvolvimentu nasional – laos ona funu ida fasil tamba ninia sirkumtánsia la hanesan, liu-liu tamba ita funu hasoru inimigu foun – ita nia-an rasik. Timor-Leste konsege “halo buat barak iha tempu badak nia laran” – dehan Presidente TMR. Ita iha paz no estabilidade, kresimentu ekonómiku ida bo’ot, meloramentu iha bem-estar, servisu saúde, asesu ba edukasaun, ahi moris permanente, dezenvolvimentu infraestrutura bázika, transferénsia sosial ne’ebé fó benefísiu direita povu ki’ik no kiak sira. Ita bele halo diak liu tan, sé karik iha tinan 15 nia laran ita fó laran no sakrifísiu tomak ho espirítu nasionalizmu ne’ebé uluk ita kaer metin ba ba iha prosesu foun dezenvolvimentu nasional ida ne’e. Infelizmente, nasionalizmu ida ne’e hahú mihis daun-daun ona.

Maibe ispiritu nasionalismu no sakrifísu ne’ebé ita halo durante luta ba ukun-rasik-an lakon daun-daun ona. Hanesan maun Xanana dehan ita agora “buka diak deit”, “ijiji uluk ita nia direitu, duké halo ita nia dever”. Tan ne’e, buat hotu-hotu ne’ebé ita halo ohin loron, ita hanoin uluk ita nia-an no ita nia familia. Wainhira ita kaer ukun, ita laos sai servidór ba estadu no povu, ne’ebé ita promete atu serví, maibé ita serví uluk ita nia-an, ita nia familia no amigu sira. Ita fó projeitu ba ita nia familia no amigu sira. Wainhira ita kaer ukun, ita hanoin uluk maka pensaun vitalísia. Ita kaer ukun buka haksubar-an husi transparánsia liu husi rejime espesial oin-oin. Ita uza partidu hanesan kurtina deit, manipuladu husi grupu elit burguoise balun ne’ebé iha osan, lori povu nia naran futu lia ba serve sira nia interese. Partidu polítiku laos dalan atu serví povu, maibe dalan ba poder no osan. Funu-nain balun ba libertasaun rai ida ne’e transforma fali tiha ona ba funu-nain aristokrasia. Sira merese duni atu hetan buat diak sira ne’e, maibé sira sei iha responsabilidade nafatin hodi kontinua luta ida ne’e to’o nia rohan, luta ba ukun-an ida kompleta – ba povu nia moris diak.

Wainhira ita halo lei ita haré uluk lei sira la soke ho ita nia interese.  Ita veta lei ba rai ne’ebé hateten ema ne’ebé faan rai tempu uluk laiha ona direitu no sira ne’ebé arenda rai iha tempu uluk laos nain ba rai. Nune’e uluk ita faan tiha ona rai, agora ita faan tan. Wainhira ita fó projeitu, ita ijiji uluk persen, uang-rokok, uang-pelicing. Ita apreveita ita nia koneksaun, ita nia naran, no ita nia luta hodi hais buat ruma husi estadu. Ita hanaran-an emprezáriu maibé ita sai broker ba ema seluk. Ita so manan naran deit, maibe ema seluk manan osan. Ita hela ho naran dólar, maibe dólar dolar ba ema seluk nian bolsu no rai seluk. Ita halo projeitu ulun-tun ain-sae, tamba wainhira ita manan projeitu, ita hanoin uluk tiha ona sosa kareta Hammer no hola feto ki’ik. Ita halo servisu estadu nian ita rekere uluk fasilidade hanesan kareta, motor, per diem, osan pulsa, osan han no overtime. Ita tama servisu tarde no sai sedu. Tan deit osan dólar, ita faan tiha ita nia nasaun ba nasaun seluk no kompañia internasional sira.

Ita uza instrumentu nasaun nian hanesan F-FDTL no Polisia ho halo abuzu ba ema sivil, hodi proteje familia no kolega. Ita halo instalasaun ilegal ba eletresidade no bé, no halo estragus ba propriedade públika hanesan ké estrada kuak, taka dalan, soe foer arbiru, sobu obras públika sira ne’ebé estadu fornese. Wainhira ita eskola bo’ot ona, ita ejiji saláriu bo’ot tamba ita sente ita merese liu. Ita valoriza liu ema seluk, duke ita-an emar rasi tamba deit kor diferente. Ita moe ho ita nia kultura, ita nia knananuk, maibe ita orgulu liu ho ema seluk nian. Nune’e tinan-tinan ita komera heroi sira nia mate, ita konvida kantor/a Indonesia mai haksolok ita. Ita estraga ema seluk nia futuru liu husi loke eskola seim asegura kualidade. Ita husik lutu nasaun nia naksobu hodi fasilita ema no sasán tama mai ita rai-laran ilegalmente. Ki’ik no kiak la hetan justisa, maibe bo’ot no riku evita justisa tamba sira iha osan, familia, koneksaun, partidu no kor. Iha buat barak seluk tan ne’ebé hau labele temin hotu iha ne’e. Buat sira ne’e hotu mosu tan deit espíritu nasionalizmu – hadomi ita nia nasaun, ne’ebé uluk ita kaer metin ba komesa mihis daun-daun ona.

Kolonializmu no okupasaun tuan bele lakon, maibé kolonizmu no okupasaun foun mosu mai naban-naban haksumik-an iha forma oin-oin. Ukun-an ida ne’e seidauk kompleta ka atinji ninia totalidade, enkuantu ita seidauk hetan ukun-an iha aspeitu sira seluk – ekonómiku, sosial, kultural no sst. Ita bele halo buat sira ne’e, tamba istoria hamutuk no hatudu mai ita katak laiha buat ida imposível. Funu foun ida ne’e laos buat ida fasil,liu-liu tamba ita funu hasoru ita nia-an rasik. Atu manan funu ida ne’e ita presiza “hikis kosar no servisu makas, iha objetivu ida hanesan, servisu ho seriedade, onestidade no kapasidade sakrifísiu”. Ita tenki buka fali “sidadaun foun”,  tenki hamanas fali “konsiénsia maubere” no “maubere nia klamar” ne’ebé “servisu makaas maibe nunka atu buka riku”. Ita tenki hamanas no hamosu fali nasionalizmu foun ida hodi hadomi ita nia nasaun no “uza Nasaun nia riku-soin sira hodi dezenvolve ho lolós ita nia ekonomia, hamenus kiak no harí nasaun ida diak, seguru no próperu”. Nasionalizmu foun ida ne’e maka monu ba responsabilidade ita jerasaun foun sira. Ita nia nasionalista jerasaun tuan sira fó fiar ida ne’e mai ita. Sira haré ita hanesan “força promissora do nosso Povo, ...esperança na construção da nossa Pátria, ...garantia do futuro da Nação”. Nune’e sira entrega mai ita “obrigasaun hodi kontinua ita nia Luta”. Ita nia luta, la seluk la leet, maka luta ba ba Povu no Nação nia moris diak.

*Artigu ida ne’e opiniaun pesoal autór nian, la reprezenta ema ka instituisaun ida ka ruma autór asosiadu ho/ba.

Nasionalizmu Foun Iha Prosesu Dezenvolvimentu Nasional Reflesaun & Rezolusaun Tinan Foun

Nasionalizmu Foun Iha Prosesu Dezenvolvimentu Nasional

Reflesaun &  Rezolusaun Tinan Foun

*Cosme da Costa Aráujo

Mehi ba ukun-rasik-an laos buat ida fasil. Realista sira iha tempu ne’ebá hateten Timor-Leste mehi mehi ida imposível – mimpi disiang bolong. Maibé, hanesan ita nia Prezidente Nicolau Lobato rasik ho fiar-an dehan “a nossa vitória é certa”, ikus mai liu husi funu ida naruk entre Davíd vs Goliat, Timor-Leste nia mehi imposível ida ne’e sai duni realidade ida laos imposível ona. Istoria hamutuk no hatudu mai ita katak hamutuk ita bele alkansa buat ne’ebé imposível. Biar hasoru susar, terus no mate oin-oin, ita kaer metin nafatin ba espíritu nasionalizmu maubere nian hodi hakilar no moris tuir liafuan “mate ka moris ukun-rasik-an”. Ita bele halo buat sira imposível ne’e, tamba deit “ita hadomi ita nia rai” – nasionalizmu. Ho ida ne’e maka nasionalista sira iha ai-laran, vila-laran no rai-liur la lakon esperansa hodi kontinua funu tuir sira idak-idak nia dalan no kbi’it. Ho ida ne’e mos nasionalista sira barak la monu ba tentasaun sira hanesan “kareta, uma, rupiah, sigaru gudang-garam no supermi”. Ho nasionalizmu ida forte,  ita rezisti para manan –  “resistir é vencer”, hanesan maun Bo’ot Xanana rasik dehan iha tempu ne’ebá. 

Hafoin funu ba “libertar a pátria” remata,  ita kontinua ho funu foun ida seluk “libertar o povo” ba Timor-Leste ida “forte, prósperu no seguru”. Maibé hanesan ita nia Prezidente Taur Matan Ruak rasik hateten “funu ida uluk fasil liu duké funu ida agora”. Funu ida agora – funu ba dezenvolvimentu nasional – laos ona funu ida fasil tamba ninia sirkumtánsia la hanesan, liu-liu tamba ita funu hasoru inimigu foun – ita nia-an rasik. Timor-Leste konsege “halo buat barak iha tempu badak nia laran” – dehan Presidente TMR. Ita iha paz no estabilidade, kresimentu ekonómiku ida bo’ot, meloramentu iha bem-estar, servisu saúde, asesu ba edukasaun, ahi moris permanente, dezenvolvimentu infraestrutura bázika, transferénsia sosial ne’ebé fó benefísiu direita povu ki’ik no kiak sira. Ita bele halo diak liu tan, sé karik iha tinan 15 nia laran ita fó laran no sakrifísiu tomak ho espirítu nasionalizmu ne’ebé uluk ita kaer metin ba ba iha prosesu foun dezenvolvimentu nasional ida ne’e. Infelizmente, nasionalizmu ida ne’e hahú mihis daun-daun ona.

Buat hotu-hotu ne’ebé ita halo ohin loron, ita hanoin uluk ita nia-an no ita nia familia. Wainhira ita kaer ukun, ita laos sai servidór ba estadu no povu, ne’ebé ita promete atu serví, maibé ita serví uluk ita nia-an, ita nia familia no amigu sira. Ita fó projeitu ba ita nia familia no amigu sira. Wainhira ita kaer ukun, ita hanoin uluk maka pensaun vitalísia. Ita kaer ukun buka haksubar-an husi transparánsia liu husi rejime espesial oin-oin. Ita uza partidu hanesan kurtina deit, manipuladu husi grupu elit burguoise balun ne’ebé iha osan, lori povu nia naran futu lia ba serve sira nia interese. Partidu polítiku laos dalan atu serví povu, maibe dalan ba poder no osan. Funu-nain balun ba libertasaun rai ida ne’e transforma fali tiha ona ba funu-nain aristokrasia. Sira merese duni atu hetan buat diak sira ne’e, maibe sira sei iha responsabilidade nafatin hodi kontinua luta ida ne’e to’o nia rohan, luta ba ukun-an ida kompleta – ba povu nia moris diak.

Wainhira halo lei ita haré uluk lei sira la soke ho ita nia interese.  Ita veta lei ba rai ne’ebé hateten ema ne’ebé faan rai tempu uluk laiha ona direitu no sira ne’ebé arenda rai iha tempu uluk laos nain ba rai. Nune’e uluk ita faan tiha ona rai, agora ita faan tan. Wainhira ita fó projeitu, ita ijiji uluk persen, uang-rokok, uang-pelicing. Ita apreveita ita nia koneksaun, ita nia naran, no ita nia luta hodi hais buat ruma husi estadu. Ita hanaran-an emprezáriu maibé ita sai broker ba ema seluk. Ita so manan naran deit, maibe ema seluk manan osan. Ita hela ho naran dólar, maibe dólar dolar ba ema seluk nian bolsu no rai seluk. Ita halo projeitu ulun-tun ain-sae, tamba wainhira ita manan projeitu, ita hanoin uluk tiha ona sosa kareta Hammer no hola feto ki’ik. Ita halo servisu estadu nian ita rekere uluk fasilidade hanesan kareta, motor, per diem, osan pulsa, osan han no overtime. Ita tama servisu tarde no sai sedu. Tan deit osan dólar, ita faan tiha ita nia nasaun ba nasaun seluk no kompañia internasional sira.

Ita uza instrumentu nasaun nian hanesan F-FDTL no Polisia ho halo abuzu ba ema sivil, hodi proteje familia no kolega. Ita halo instalasaun ilegal ba eletresidade no bé, no halo estragus ba propriedade públika hanesan ké estrada kuak, taka dalan, soe foer arbiru, sobu obras públika sira ne’ebé estadu fornese. Wainhira ita eskola bo’ot ona, ita ejiji saláriu bo’ot tamba ita sente ita merese liu. Ita valoriza liu ema seluk, duke ita-an emar rasi tamba deit kor diferente. Ita moe ho ita nia kultura, ita nia knananuk, maibe ita orgulu liu ho ema seluk nian. Nune’e tinan-tinan ita komera heroi sira nia mate, ita konvida kantor/a Indonesia mai haksolok ita. Ita estraga ema seluk nia futuru liu husi loke eskola seim asegura kualidade. Ita husik lutu nasaun nia naksobu hodi fasilita ema no sasán tama mai ita rai-laran ilegalmente. Ki’ik no kiak la hetan justisa, maibe bo’ot no riku evita justisa tamba sira iha osan, familia, koneksaun, partidu no kor. Iha buat barak seluk tan ne’ebé hau labele temin hotu iha ne’e. Buat sira ne’e hotu mosu tan deit espíritu nasionalizmu – hadomi ita nia nasaun, ne’ebé uluk ita kaer metin ba komesa mihis daun-daun ona.

Kolonializmu no okupasaun tuan bele lakon, maibe kolonizmu no okupasaun foun mosu mai naban-naban haksumik-an iha forma oin-oin. Ukun-an ida ne’e seidauk kompleta ka atinji ninia totalidade, enkuantu ita seidauk hetan ukun-an iha aspeitu sira seluk – ekonómiku, sosial, kultural no sst. Ita bele halo buat sira ne’e, tamba istoria hamutuk no hatudu mai ita katak laiha buat ida imposível. Funu foun ida ne’e laos buat ida fasil,liu-liu tamba ita funu hasoru ita nia-an rasik. Atu manan funu ida ne’e ita presiza “hikis kosar no servisu makas, iha objetivu ida hanesan, servisu ho seriedade, onestidade no kapasidade sakrifísiu”. Ita tenki hamanas fali “konsiénsia maubere” no “maubere nia klamar” ne’ebé “servisu makaas maibe nunka atu buka riku”. Ita tenki hamanas no hamosu fali nasionalizmu foun ida hodi hadomi ita nia nasaun no “uza Nasaun nia riku-soin sira hodi dezenvolve ho lolós ita nia ekonomia, hamenus kiak no harí nasaun ida diak, seguru no próperu”. Nasionalizmu foun ida ne’e maka monu ba responsabilidade ita jerasaun foun sira. Ita nia nasionalista jerasaun tuan sira fó fiar ida ne’e mai ita. Sira haré ita hanesan “força promissora do nosso Povo, ...esperança na construção da nossa Pátria, ...garantia do futuro da Nação”. Nune’e sira entrega mai ita “obrigasaun hodi kontinua ita nia Luta”. Ita nia luta, la seluk la leet, maka luta ba ba Povu no Nação nia moris diak.

*Artigu ida ne’e opiniaun pesoal autór nian, la reprezenta ema ka instituisaun ida ka ruma autór asosiadu ho/ba.

Flavor of home-grown coffee spreading beyond East Timor

http://asia.nikkei.com/Business/Consumers/Flavor-of-home-grown-coffee-spreading-beyond-East-Timor

Warning signs

Simen Bjornerud

Observing the development in the Government’s incomes and expenditures gives rise to concerns, of which some are briefly discussed below.

One concern is the frontloading of capital expenditures in which the Government aims to make big investments today in order to achieve strong growth and hopefully broad-based prosperity in the future. Although the idea intuitively seems reasonable, caveats in the implementation abound. One crucial condition for success is that you have the necessary administrative and institutional capacity to make sure every dollar is well spent. I note that appropriations of fresh money to the budget item “development capital” have come down quite a bit since the peak in 2012. I assume this has to do with declining execution rates and transfer of piled-up cash to the next budget year. Banging against the administrative constraint like this, I fear an increased likelihood of waste and poor projects.

Another, and maybe greater, concern is the acceleration of recurrent expenditures. Figures 1 and 2 show how these expenditures have ballooned compared with domestically collected revenues. Many recurrent expenditures are well justified, some are not. But that is not really the point. The point is that the development cannot be sustained. It is not affordable. These expenditures need to come down.

Figure 1: Enjoying the public purse

 

Figure 2: Closing the gap

Nationals with super high salaries have been the topic of some hot discussions lately. Figure 1 shows that expenditures to wages have increased, but the increase appears less dramatic than the increase in goods and services and public transfers. Still, super high salaries to a selected group of people could be seen as a symptom, a visible sign, of the wider lack of budgetary discipline.

In addition to contributing to the financing gap, the relatively weak development in domestic revenues also represents the lack of a “social contract” between the Government and the people. In a society where the citizens generally pay taxes, they will to a greater extent hold their Government to account. In Timor-Leste, relatively few people pay taxes and most of the budget is financed by oil money. The people of Timor-Leste probably feels less ownership to oil money than if it was his or her “own” hard earned tax contribution. That suggests that the Government to a greater degree can do as it pleases without being scrutinized by their constituencies.

In conclusion, there are clear signs that Timor-Leste is living above its means. Over time the Government’s budget constraint is defined by domestic revenues and the ESI from the Petroleum Fund. The Government has been spending much more than that for a while, the rationale being to “kick-start” the economy. Lately, the high spending has to a greater extent been driven by accelerating recurrent spending. As opposed to the frontloading strategy, it is hard to find a reasonable rationale behind this development. Be careful, if not dealt with, it could become nasty.

 

Shire urges to back East Timor's gas field claims

http://issuu.com/morningtonnews/docs/mn_15_september_2015/1

Shall Timor-Leste adopt accrual basis accounting? – a case study of Timor-Leste's public sector

Basilio Ribeiro de Carvalho Soares, S.Sos, M.Acc

The Accounting Standard has been widely used in several countries in the world. Each country certainly has its own accounting Standard that is regulated by its own Accounting Standard Board. In general, there are two accounting methods which are used by either public sectors or private sectors to report the income and expenses in their cash books. These two accounting methods are called as Cash Basis and the Accrual Basis. This article will focus on the accounting practice in the Timor-Leste’s public sector.

The Accounting Cash Basis Method is defined as a method that recognizes revenues and expenses at the time when the cash is actually received or paid out (Investopedia 2015). For instance, the Government of Timor-Leste, has a plan to establish the grand project in Oecusse which is called Autoridade da Região Administrativa Especial de Oe-cusse Ambeno (ARAEOA), a pilot social market economic model, led by Dr. Mari Alkatiri, to accelerate inclusive economic development in Oe-cusse (MoF Media Release 2015). The budget for this project has been approved in the 2015 General State Budget and the plan has been designed and the project will be started in these following months ahead within 2015. Under the cash basis, after approving the budget the expenditures for this project shall not be immediately recognized as expenses until the payment is made out by the government to the ARAEOA. However, let says for instance, if the accrual basis is adopted, after approving the budget, the expenditures for the ARAEOA project will be recognized as liabilities in the government’s balance sheet.    

Unlike the Cash – based accounting system, accrual accounting requires income to be recognized in the cash book at the time when the revenue is earned or recognized but not physically received, and record the expenditures when liabilities are incurred but not paid out.

The issue is which accounting method is best suited to the public sector in Timor-Leste? Should it be Cash basis or Accrual Basis? 

The full cash basis has been traditionally used by the public sector in many countries to record their cash book but over these last decades there has been a discussion whether those countries that have used the full cash basis have to transform to the Accrual Basis and whether the transformation to the Accrual Basis will give any benefit or not.

Furthermore, there is an ongoing trend to shift from the cash basis into the accrual basis in the public sector in many countries. It is no doubt that the accrual-based accounting method provides more comprehensive financial information compared to the Cash Basis for the decision making in the financial sector. For instance, both Australia and New Zealand governments have declared that they had adopted the Accrual Accounting system more comprehensively than others. In general, an accrual system is seen as a way of increasing budget transparency, especially in terms of its ability to account for long-term assets and liabilities, and also as a tool for increasing government efficiency through performance-based management (Champoux 2006).

The government of Timor-Leste is currently adopting the International Public Sector Accounting Standard (IPSAS) Full Cash Basis. However, there will be a potential concern in the future that there is a possibility to move the accounting practice in the public sector from the cash basis to the accrual basis method. Why this concern may probably occur?

The National Parliament has approved the loan from the external lenders such as World Bank, JICA and ADB. When the loan is incurred, there is a confusion whether the event when the transaction is made or the loan is incurred shall be recorded under the Accrual Basis or shall it be kept recorded under the Cash Basis. Theoretically, under the Cash-based accounting, the revenue is recorded when the cash is physically received. However, when the loan is incurred, and in fact the loan has been incurred, shall be recognized as the liabilities of the government, and thus this event shall not be recognized under Cash – based financial report. Under Cash based method, a great disadvantage is that it does not recognize assets, debtors and liabilities (Ibanichuka & James 2014). James and Ibanichuka also emphasizes that the other limitations according to IFAC (2002) on cash basis of accounting is in the absence of full and complete information about the liabilities, contingencies and commitments, government and other users of government financial report cannot make realistic assessments about government’s financial position. As a consequence, the government will not be able to effectively assess both the impact of past decisions on future financial position. Cash basis of accounting is also observed to be the commonly used in the public sector which has some limitations and setbacks that affects financial transactions such as poor budget implementation, mismanagement of public fund etc (Ibanichuka & James 2014). Thus, the liabilities in any forms shall be recognized under Accrual based method. 

Is the Accounting in public sector in Timor-Leste ready to be transformed to the Accrual basis?. Adriana Turon and Alexandra Mutiu, Associate Professors from University Babes Bolyai Romania, asserts that “According to the Accrual Based Method the emphasis is on efficiency, so it is recommended that the public sector should introduce the set of financial statements applied in the private sector, which is made according to accrual accounting.” (Tudor & Mutiu).

Another question that needs to be examined is whether the Timor-Leste government’s budget execution under Cash based method, over these last three years, had been executed efficiently.

Efficiency is defined as a level of performance which describes how far an institution is expected to increase its output and to achieve the expected outcomes without absorbing further resources. For instance, a machine, at a given cost, will be considered as efficient, if it can produce a large amount of quantity of outputs compared to other equipment. The budget execution of the government of Timor-Leste for the fiscal year 2011, 2012 and 2013 respectively have shown that the amount of the expenditures incurred are greater than the revenues (non-oil revenues) received during for the each fiscal year (Annual Audited Financial Report Ministry of Finance 2011, 2012, and 2013). This indication eventually leads this nation to the shortage of the fund every year. However, this shortage of the fund is covered by the Petroleum Fund so that this deficiency of the budget execution can be resolved.

The government has to be more efficient in executing its budget before moving to the accrual based method which is quite comprehensive and the complexity is quite significant. As a fact, over the last past few years the budget approved could not be efficiently executed. The emphasis of Inefficiency here is the budget approved that could not be fully executed had been carried over to the subsequent financial years and also, the outcomes of the budget execution does not significantly affect to the people’s life. For instance, in 2014, in order to boost the Timorese Tourism sector to the world, the government through Ministry of Tourism ran a program called Miss Tourism. This program was not included in the Ministry’s plan and the fund for this project was not prepared within their budget, but the Ministry suddenly, in the middle of the fiscal year, initiated to run this program. Consequently, the Ministry had to use the fund from another program that had been included in their working plan. If the budget was executed properly according to their working plan, the efficiency of the budget execution would be in place and thus this would benefit to the people.

If under cash based method the government’s expenditure is not efficiently executed, then the question is how the government will enhance its efficiency in budget execution under accrual based method which has a complexity. Accrual based can be implemented when the efficiency of budget spending and the fiscal discipline under full cash basis are in place. Therefore, the efficiency of the state expenditure needs to be fixed and the government needs to improve its current cash based accounting system.

Furthermore, the government of Timor-Leste has to initiate in setting up its own National Accounting Board. The function of this board is to set up its own National Accounting Standard that complies with the international Accounting Standard for both Public and private sectors. It is true that the uniform reporting standards will lead to the decrease of cost of capital because internationally accepted standards will expand the base of global funding without the penalty of additional reporting costs. In 1971, the members of accounting profession realized that it is important to create International Accounting Standard to response the global corporation and market needs (Sawani). Furthermore, Sawani in her findings stated that although the implementation of International Accounting Standard is significant, there are several challenging factors that influence to implement the IAS in a country, for instance, Social and Cultural values; political and legal systems, business activities and economic condition, capital market and form of ownership (Sawani).

In terms of economic condition as described by Sawani is the structure of capital markets. There are several studies that have been made regarding the effect of capital markets on accounting standards. Capital formation through public financing, private investment or foreign private investment are necessary ingredients for economic development. All the relevant financial information to motivate private investment or validate public financing relies on accounting data. Accounting data is pivotal in creating a level of confidence for working capital market structure. Thus the structure of capital markets influences the nature of accounting standards in different countries. For example in Germany, most of the financing for capital markets came from creditors, mainly banks, this is reflected in accounting goals. The main purpose of financial reporting in Germany is protection of creditors and capital maintenance. However, in the U.S., where the capital market is equity based, the main purpose of financial reporting is the protection of investors. The dominance of equity financing in the U.S. created an accounting structure concerned with fair presentation and full disclosure but in Germany, accounting is concerned with calculating distributable income, i.e., making sure creditors get their payment (Sawani).

It is important to consider that in the absence of the National Accounting Standard Board and the National Accounting Standard, who will be in the position to regulate and to oversee both public and private sectors in implementing the International Accounting Standard in the country. It is obvious that  the International Accounting standards are oriented to serve the needs of investors and capital markets (Ibanichuka & James 2014) which contradicts to the Timor-Leste’s context. The Strategic Development Plan, designed by the government, is oriented to serve the people’s interest and to increase the national economic growth rather than the investors’ need. The National Accounting Standard Board mission will assist to develop and promote high quality accounting and financial reporting standards that are consistent with international best practice for the benefit of users, preparers, auditors and the public in Timor-Leste.

Another point that has to be examined is that it is also essentially important to change the mindset of the politicians who are recognized as the main stakeholders for the Accounting in Public sector. These stakeholders seemed not concerning the profitability and the financial position of the government but they seemed to be much concerned with the budget implementation.

To sum up, the government is not in the position ready yet to adopt the accrual basis as this country still has inadequate resources, expertise, poor infrastructure as well as the poor system. The government needs to improve its existing cash basis accounting and to gradually adopt the accrual basis that complies with the IPSAS accrual basis. Furthermore, as an initial phase that needs to take into the consideration is that the government shall improve the function of cash accounting so that the major weaknesses such as inefficiency of budget expenditure can be gradually tackled out. The next step would be the establishment of the Timor-Leste Accounting Standard Board where the main function of this board is to oversee and to assist both Private and Public Sectors on how to prepare the Financial Report that complies with the International Financial Reporting Standard (IFRS). The last stage after the board is in place as well as the budget executed efficiently, would be the implementation of the accrual system on a gradually basis and the initial adoption should be in a simple form as the government has already incurred the loan from external institution.