Analysis of the Financial Performance of the Government of Timor-Leste Using the Value for Money Approach Based on the Conta Geral do Estado

Abstract

Financial performance assessment is an important aspect of public financial management because it ensures that government resources are utilized economically, efficiently, and effectively. Despite the widespread application of the Value for Money (VfM) framework in the public sector, empirical studies at the national government level in Timor-Leste remain limited. This study aims to evaluate the financial performance of the Government of Timor-Leste using the Value for Money approach based on the Conta Geral do Estado (CGE) during the 2019–2024 fiscal years. A quantitative descriptive research design was employed using secondary data obtained from the annual Execução Global do Orçamento Geral do Estado reported in the CGE. Financial performance was measured through economy, efficiency, and effectiveness ratios. The results indicate that budget management remained economical throughout the study period, while efficiency improved from inefficient (2019–2021) to efficient (2022–2024). Effectiveness also increased from ineffective in the early years to effective in 2023 and 2024, with the highest ratio reaching 101.23% in 2024, indicating that realized revenue exceeded the planned target. These findings demonstrate continuous improvements in public financial management and provide empirical evidence supporting the application of the Value for Money framework to strengthen fiscal accountability and budget management in Timor-Leste.