Summary

In this policy paper, fiscal space is understood as the resources available to a government derived from actively exploring and using all its possible revenue sources (Ortiz et al., 2017). This is based on definitions by the ILO, United Nations Children’s Fund (UNICEF), and United Nations Entity for Gender Equality and the Empowerment of Women (UN Women). This concept of fiscal space expands the International Monetary Fund’s (IMF) definition. It is structured into four sections, after the introduction section 2 outlines eight financing options for sustainable social protection in Timor-Leste, offering quantitative data and arguments to inform stakeholders. Section 3 discusses the need for national social dialogue on fiscal space options. Finally, Section 4 summarizes potential financing sources for social protection in Timor-Leste.