ADB Fuels Cambodia’s Fiscal Evolution with a US$50m Boost

• 25 November 2023
• Local News
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The Asian Development Bank (ADB) takes a significant stride in fortifying Cambodia’s financial landscape, greenlighting a substantial US$50 million loan to bolster the nation’s public financial management (PFM) system, encompassing public investment. This noteworthy development is illuminated in an official ADB press release.

Jyotsana Varma, ADB Country Director for Cambodia, underscores the pivotal role of this ADB-backed reform in addressing developmental challenges identified by the Royal Government. The comprehensive initiative aims to enhance Cambodia’s spending and revenue management processes, elevating the performance capacity of the ministry and fortifying the external audit function. Varma emphasises that these interventions will carve out additional fiscal space, empowering the government to elevate the accessibility and quality of public services while fostering support for sustainable growth.

ADB has been a steadfast partner in steering Cambodia’s PFM reforms since 2008, contributing to both national and sub-national levels. This enduring collaboration includes capacitating government officials in gender-responsive and inclusive budgeting. The integration of gender mainstreaming into government budgets stands as a testament to ADB’s commitment to enhancing gender capacity.

Within this collaborative framework, ADB has played a pivotal role in supporting Cambodia’s public investment projects, with a particular focus on bolstering resilience against natural disasters. The allocation of budget resources to fortify resilience against climate change underscores the bank’s commitment to steering Cambodia towards a sustainable and resilient future.

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