Sara Everingham, Dili – East Timor's President says Australia should spend more of its aid money helping educate East Timorese.

Jose Ramos-Horta says Australia allocates $100 million to East Timor each year. He says he would like to see the number of scholarships Australia offers to East Timorese increase from 20 to 100, and he would like to know how much of Australia's aid money to East Timor is spent in his country.

"I ask Kevin Rudd today, you provide us with $100 million a year, why wouldn't you increase the number of the scholarships to east Timorese studying in Australia in TAFEs?" he said.

"Why [are] they so reluctant to spend money – that money, $100 million – on East Timorese youth to study in Australia?"

Dr Ramos-Horta says he is worried much of the aid money gets spent on hiring outside consultants and never makes it to the people of East Timor.

"They are reluctant because this money wouldn't go to consultants, wouldn't go to reports, it goes straight to the students and the universities," he said.

"So I don't understand how very little money, very few scholarships – one of the wealthiest countries in the world, Australia – provides to Timor."