{
  "title": "Democratic Republic of Timor-Leste: Selected Issues and Statistical Appendix",
  "publication": "IMF Staff Country Reports, February 28, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/democratic-republic-of-timor-leste-selected-issues-and-statistical-appendix-20481",
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  "summary": "This Selected Issues paper presents evidence on linkages between investment and growth observed in other countries to gauge the expected impact of increasing public investment in Timor-Leste.",
  "sections": [
    {
      "heading": "Executive summary",
      "content": "- The paper assesses linkages between investment and growth observed in other countries to gauge the expected impact of increasing public investment in Timor-Leste.\n- Key high-level conclusions:\n  - The level of capital expenditure envisioned in the government’s strategy could significantly boost economic growth and reduce poverty.\n  - The paper reviews major issues related to tax policy reform in Timor-Leste.\n  - The paper discusses the current direction of Timor-Leste Petroleum Fund asset management and issues that might arise with eventual asset diversification."
    },
    {
      "heading": "Public investment and growth",
      "content": "- Analytical focus:\n  - Evidence from cross-country linkages between investment and growth is used to estimate expected impacts of higher public investment in Timor-Leste.\n- Findings:\n  - Increased public capital expenditure, at the levels envisioned in the government’s strategy, is assessed to have substantial positive effects on economic growth.\n  - Projected growth effects are linked explicitly to potential poverty reduction outcomes."
    },
    {
      "heading": "Tax policy reform",
      "content": "- Scope of review:\n  - Major issues related to tax policy reform in Timor-Leste are examined.\n- Themes covered:\n  - Design and implications of income and capital gains taxes and income tax systems.\n  - Revenue administration and reform considerations relevant for strengthening tax capacity and revenue mobilization."
    },
    {
      "heading": "Timor-Leste Petroleum Fund (TLPF) asset management and diversification",
      "content": "- Analytical focus:\n  - The current direction of TLPF asset management is described.\n  - Potential issues associated with eventual asset diversification are discussed.\n- Considerations highlighted:\n  - Asset allocation and investment objectives for the TLPF.\n  - Risks and operational issues that could arise during diversification of TLPF assets."
    },
    {
      "heading": "Key takeaways for policymakers",
      "content": "- Public investment:\n  - Pursuing the government’s envisioned capital expenditure program could materially boost growth and contribute to poverty reduction.\n- Tax reform:\n  - Addressing major tax policy and revenue administration issues is important to support sustainable public finances and effective use of increased investment.\n- Sovereign wealth management:\n  - Careful planning is needed for TLPF asset management and any diversification to manage risks and align with investment objectives.\n\nDemocratic Republic of Timor-Leste: Selected Issues and Statistical Appendix, February 28, 2007\n\n---\n\n Content in this bundle\n\n- cr0786\n  - cr0786 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - cr0786 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: February 28, 2007",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781451837346.002",
    "The paper assesses linkages between investment and growth observed in other countries to gauge the expected impact of increasing public investment in Timor-Leste.",
    "Key high-level conclusions:",
    "Analytical focus:",
    "Findings:",
    "Scope of review:",
    "Themes covered:",
    "Analytical focus:",
    "Considerations highlighted:",
    "Public investment:",
    "Tax reform:",
    "Sovereign wealth management:",
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