The contentious decision received 36 votes in favour, 27 against and one abstain.

Sara Lobo Brites, the Vice Minister of Planning and Finance who pushed the decision, said in a speech after the vote the funds were needed to cover State education, health and petroleum programs as well as salaries for veterans and retired government members.

Approved government funds currently sit at US$20million.

The decision comes as Odete Viegas, the National Hospital Director told the Independente on Tuesday, that Timor-Leste’s State health funds would be used up by the end of July, a casualty of the on-going political stalemate in the Ministry of Health portfolio.

Francisco Miranda Branco, a Fretilin Minister who supported the vote, criticized the decision to debate the withdrawal in National Parliament saying it added a layer of “bureaucracy” to government programming that the country could ill afford.

"If the government’s State money is under US$200 Million then it can take money from the Petroleum Fund,” Branco said, adding that there was “no need” to debate the move in National Parliament.”

Branco said the government should have “just informed National Parliament of the decision.”

Carmelita Monis, of the National Congress for Timorese Reconstruction party, dismissed Branco’s comment saying it was “absolutely necessary” to debate the decision in National Parliament to ensure transparency.