¿	Strengthening Public Finance Management in Timor-Leste This Action ensures the continuity of the EU support to the government in the field of Public Finance Management reform in Timor-Leste. The Action is included in Priority Area 2 of the Multiannual Indicative Program 2021-2027, "Good Governance for Sustainable Development", which in turn is in line with the government's objectives of the Strategic Development Plan 2011-2030 regarding public sector management and good governance as well as the Economic Recovery Plan 2021-2022 (approved in August 2020).The rationale behind this support stems from the fact that one of the primary constraints to the country's development lies in the weak capacity of its institutions, which are still in a process of development and consolidation, following the post-independence period. This weakness is particularly evident in the field of public finances and is reflected in the limited capacity of the administration of Timor-Leste to manage public resources effectively and efficiently, with a direct negative effect on the state¿s capacity to implement their human rights obligations, in particular, it¿s capacity to deliver quality basic services. The government has affirmed its political will to improve the public finance system, but this has not yet been translated into a concrete action plan. Therefore, this action is based on the project modality, focusing on key reform areas, like the domestic resource mobilization, the consolidation of programme budgeting and the fiscal decentralization, the latter in connection with the administrative decentralization.When the PFM reform action plan is approved, the present Action will support its initial implementation, assisting the government to put in place the reform coordination and monitoring mechanisms through technical assistance to be delivered to relevant Directorates of the Ministry of Finance, envisaging also the implementation of climate and gender PFM reforms. The TA does not intend to replace the administration's functions and responsibilities. It will rather provide strategic advice on the implementation of the reform in specific domains.The specific objective (outcome) of this action is to Strengthened domestic and other revenue mobilisation, public expenditure management and increased transparency, efficiency and effectiveness of public expenditure for the benefit of all.The expected outputs to be delivered by this action contributing to the specific objective are (i) PFM Reform Action Plan launched and initially implemented, with a special attention on gender, climate change adaptation and digital transformation, (ii) Tax Authority reinforced, through the development of a people-centred tax system and administration, (iii) System of gender-responsive planning, programming and budgeting harmonized, articulated and streamlined in line with the new budget framework law, and (iv) Fiscal decentralization strategy elaborated and approved.The Action contributes directly to the attainment of the SDG objective "16. Peace, justice and strong institutions", which highlights the purpose of improving transparency and effectiveness of the public administration as well as the gradual decentralisation of planning and budgeting to the municipal level. It will also contribute to the attainment of the SDGs "1. No poverty", through the setting up of planning and budgeting systems that will address the provision of public services to the population, in particular to those living in vulnerable situations, "5. Gender equality", through the inclusion of this dimension in the PFM reform goals and budget systems, and "17. Partnerships for the Goals", focusing on the international cooperation and partnership supporting PFM reforms in a coordinated and complementary manner.