Government Budget Exceeds $9 Billion in 2024: MEF
This photo shows Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth. Photo: MEF
- By Ou Sokmean
- January 5, 2024 7:10 PM
PHNOM PENH – The government’s budget for 2024 has been set at 37,110,404 million riel, equivalent to $9.1 billion, according to the Ministry of Economy and Finance (MEF) Budget in Brief Fiscal Year 2024 report, released on Dec. 27, 2023.
The budget represents 25.96 percent of the country’s GDP.
Out of the total $9.1 billion, $6.3 billion is allocated to the state’s expenditures, accounting for 18.11 percent of the GDP. An additional $2.7 billion (7.85 percent of the GDP) will be used for capital expenditures, which represents the government’s investments in infrastructure.
The government will use $120 million to strengthen public administration by focusing on the quality and efficiency of public projects carried out by ministries.
The healthcare spending will be split into two sections. A $13 million budget will finance the healthcare system for civil servants, the armed forces and the pension system, while $83 million will be spent to expand healthcare services to the population.
An additional $1.5 million is provisioned for covering occupational risks for public officials.
In addition to expanding the reach of the healthcare system, which is one of the six priorities of the government, $36 million will be allocated to developing technical and vocational education for the youth. Another $165 million will serve to establish national security programs for poor and vulnerable households.
The government also plans to spend $100 million for implementing the strategy on informal economic development and another $100 million for financial coordination mechanisms and programs, while also preparing $4 million for dispatching agricultural expert officials in all communes and districts.
In socio-economic development, the government keeps $102 million for enhancing education quality, $59 million for healthcare services enhancement, $9 million for strengthening safe village-commune policy implementation, and another $2.5 million for the justice system.
Ministry of Royal Palace’s dotation increases by 7.6 percent
The government also allocated a budget of 92,443 million riel (approximately $22.5 million) for expenditures within the Ministry of the Royal Palace, up 7.6 percent compared to 2023 ($20.9 million).
The budget is arranged in the “Royal Affairs of the King and the Queen Mother” program, according to the MEF budget briefing.
A total of 30,930 million riel ($7.5 million) will be used for royal affairs in social, humanitarian, cultural, and religious works while 4,210 million riel (around $1 million) will be assigned for the King’s missions abroad. The remaining 57,303 million riel (about $14 million) is for management and administrative works.
The Ministry of Royal Palace has been receiving some of the government’s budget since 2018.
The provision serves as a budget for the King's and Queen Mother's representations on the international stage, as well as for development missions, following the constitution.
Since the endowment began in 2018, 2020 was the year in which the Royal Palace Ministry received the largest budget, with a provision of 102,815 million riel (around $25 million).
Expenses Exceed Revenues
While the total budget stands at $9.1 billion, the state’s incomes are only expected to reach $8 billion, leaving a $1 billion hole to fill in the public purse.
The mismatch is due in particular to the expected increase in salaries for governmental officials at all levels, ranging from the contracted officials to the civil servants, according to the Finance Ministry.
To fill the gap the government is planning to raise $108 million from local investors by issuing state securities and to borrow $1.7 billion in SDR – a financial mechanism used by the International Monetary Fund – equivalent to $2 billion.
“State securities issuance and foreign loans will not become a financial burden to the country. It is the technical context of the country’s debt situation which is assessed to remain sustainable and low-risk,” the ministry said, adding that it is because debt indicators are all below the base ratio.
The ministry said the country plans a budget of 2,115 billion riel (around $516 million), or 1.48 percent of GDP, for debt amortization. The figure shows an increase of 13.70 percent, compared to 2023.
Meng Seavmey contributed to the story.
