Cambodia’s Stronger National Budget Reduces Dependence on Foreign Loans for Infrastructure Development, Says PM Hun Sen

• 21 March 2023
• Local News
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Cambodian Prime Minister Samdech Hun Sen has revealed that the country’s strengthened national budget has helped reduce the need for foreign loans for infrastructure development.

Speaking at the fourth phase launch of the Public Financial Management Reform Program on March 20, the prime minister stated that in the past, two-thirds of the national budget was funded by foreign financial aid resources. However, with the implementation of the Public Financial Management Reform Program, domestic revenue has now accounted for two-thirds of the budget. The annual foreign borrowing is less than 20 per cent of the total national budget.

“The good achievements of the Public Financial Management Reform Program have strengthened the ownership and role of the Royal Government of Cambodia in taking responsibility for the nation’s fate by reducing dependence on foreign borrowing,” said PM.

The efficient use of public funds has enabled the Cambodian government to improve public services, including the development of physical and non-physical infrastructure. The Rectangular Strategy, which focuses on four priorities – people, roads, water, and power – has facilitated the construction of vital infrastructure, such as roads, bridges, and other projects.

Thanks to the strengthened national budget, Cambodia is reducing its dependence on foreign loans and, consequently, reducing its debt burden. The government’s commitment to responsible financial management will benefit the country in the long term, providing a stable foundation for future economic growth and development. (Read more)

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