Cambodia Prepares Strategic Budget Plan 2025 to Weather Global Economic Headwinds

• 20 May 2024
• Local News
• 1149 Views

The Cambodian government is taking proactive measures to safeguard its economic stability in the face of a challenging global economic climate. On 13 May 2024, Circular No. 06. US was issued, outlining the development of a strategic budget plan for 2025-2027, alongside a draft law on financial management specifically for 2025. This initiative underscores the government’s commitment to enhancing expenditure and revenue efficiency.

Cambodia’s current economic landscape is characterised by heightened risks and uncertainties. The global economic slowdown is a primary concern, compounded by factors such as China’s economic situation, tightening global monetary policies, and ongoing geopolitical tensions. These elements have the potential to disrupt global supply chains and trigger inflation in international commodity prices. Additionally, the ever-present threat of climate change and natural disasters adds another layer of complexity to the economic and trade environment.

In response to these pressing challenges, the Cambodian government has prioritised strategic public financial management. This strategy emphasises targeted expenditure allocation and meticulous revenue management. Specific focus is being placed on strengthening revenue collection through customs and excise measures, taxation strategies, and non-tax revenue streams.

Furthermore, Circular No. 06. US underscores the crucial role of leadership across all ministries and institutions. The document emphasises the need for officials at all levels to wholeheartedly embrace the principles and requirements outlined for effective revenue generation and expenditure management.

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