The amendment, approved without opposition this week, would lift total government expenditure for 2026 to about $2.39 billion, according to government figures.

The proposal now moves to committee scrutiny and article-by-article discussion before a final parliamentary vote.

The amendment was approved by the Council of Ministers during an extraordinary meeting on 27 May and formally presented to parliament by Prime Minister Xanana Gusmão.

 According to a government statement, the additional funding is intended to address rising international fuel prices, costs linked to Timor-Leste's presidency of the Community of Portuguese Language Countries (CPLP), and additional expenditure requirements in the Oe-Cússe Special Administrative Region.

The government has argued that higher global energy prices, partly driven by instability in the Middle East, could increase pressure on households and public finances in the import-dependent nation.

According to the government, around 30 percent of the 2026 budget had been executed by late May, equivalent to approximately $736 million.

The amendment represents one of the largest changes to the budget since it was approved earlier this year and comes as the government seeks to maintain fuel subsidies and fund key state programmes.

Parliament is expected to continue debating the proposal in the coming weeks before a final vote.