PART IV

ECONOMIC AND FINANCIAL ORGANISATION

TITLE I

GENERAL PRINCIPLES

Section 138

(Economic organisation)

The economic organisation of East Timor shall be based on the combination of community forms with free initiative and business management, as well as on the co-existence of the public sector, the private sector and the co-operative and social sector of ownership of means of production.

Section 139

(Natural resources)

1. The resources of the soil, the subsoil, the territorial waters, the continental shelf and the exclusive economic zone, which are essential to the economy, shall be owned by the State and shall be used in a fair and equitable manner in accordance with national interests.

2. The conditions for the exploitation of the natural resources referred to in item 1 above should lend themselves to the establishment of mandatory financial reserves, in accordance with the law.

3. The exploitation of the natural resources shall preserve the ecological balance and prevent destruction of ecosystems.

Section 140

(Investments)

The State shall promote national investment and establish conditions to attract foreign investment, taking into consideration the national interests, in accordance with the law.

Section 141

(Land)

Ownership, use and development of land as one of the factors for economic production shall be regulated by law.

TITLE II

FINANCIAL AND TAX SYSTEM

Section 142

(Financial system)

The structure of the financial system shall be determined by the law in such a way as to guarantee that savings are encouraged and built up with security and that the financial resources necessary for economic and social development are provided.

Section 143

(Central Bank)

1. The State shall establish a national central bank jointly responsible for the definition and implementation of the monetary and financial policy.

2. The Central Bank functions and its relationship with the National Parliament and the Government shall be established by law, safeguarding the management autonomy of the financial institution.

3. The Central Bank shall have exclusive competence for issuing the national currency.

Section 144

(Tax System)

1. The State shall establish a tax system aimed at meeting the financial requirements of the State and the fair distribution of national income and wealth.

2. Taxes shall be established by law, which shall determine the incidence, tax benefits and the guarantees of taxpayers.

Section 145

(State Budget)

1. The State Budget shall be prepared by the Government and approved by the National Parliament.

2. The Budget law shall provide, based on efficiency and effectiveness, a breakdown of the revenues and expenditures of the State, as well as preclude the existence of secret appropriations and funds.

3. The execution of the Budget shall be monitored by the High Administrative, Tax and Audit Court and by the National Parliament.