Dili – The East Timorese government is to undertake a review of its state budget plans after a fall in government receipts and delays in delivering aid funds have left the new nation with a deficit of about USD 1.9 million in the third quarter of this year.

A statement released after a meeting of East Timor's cabinet Wednesday said that the deficit was due to "delays in some payments from the international community and the need to revise estimates of government revenue".

Lusa has learned that receipts into Timor's exchequer between July and September were 10 percent below expectations. The main reasons for this fiscal shortfall are difficulties in collecting excise duties and problems in the power supply sector. Many electricity consumers complain at high tariffs and unreliable supplies and do not pay their bills.

The Dili government has approved measures to widen the types of firms eligible for taxation – some businesses still remain exempt from tax. Other sectors such as construction, transport and mineral extraction will pay higher contributions.