The national budget for 2022, approved by Prime Minister Hun Sen earlier this month, will be executed in three stages, according to a document reviewed by Khmer Times.

The first phase will be launched next year from March to May, the second from June to September and the final from October to December the documents cited revealed. It is believed the measures were approved on June 8.

The budget sets out to increase state revenue by 27.1 percent over 2021 to a total of 21.47 percent of the Kingdom’s gross domestic product (GDP). National revenue is to increase by 27.3 percent over this year to 21.28 percent of GDP.

“To achieve [these] plans, the government will focus greater on implanting and promoting government mechanisms, political platforms and other related [methods] to improve [efficacy] in generating revenue while the government encourages local and foreign investments of various forms,” the document reads.

Internal base projections for 2022 set GDP growth at $30.8 billion, approximately 5.7 percent of total GDP. This will be accomplished by improved domestic and external trade activities as the global reopening begins to take shape.

Revenue from customs and duty is targeted to be equivalent to 9.3 percent of GDP – an increase of 20.8 percent from 2021.

Tax collections are set to increase by 32.3 percent to 8.35 percent of GDP.

Domestic capital revenue is directed to reach 0.19 percent of GDP – an increase of 9.8 percent over 2021.

The government is also targeting a financial injection of 0.99 percent of GDP to help the Kingdom’s post-pandemic recovery efforts.

“Cambodia, especially with the current developing trend of new variants of Covid-19, continues to face challenges with the slowdown of foreign direct investments and impacts from trade and technology standoffs,” the document said.

The Prime Minister has also set ambitious standards for spending next year ahead of commune elections.

Government expenditures will increase by 13.9 percent over this year, amounting to 16.81 percent of GDP.

General administration spending will account for 1.79 percent of GDP and will aim to reform ministry offices and expand international cooperation, economic diplomacy and investment laws.

A total of 4.18 percent of GDP will be allocated for defense, security and public order, including reforms in the judicial system.

The social sector will receive 8.59 percent of GDP with a focus on logistics, transportation, e-commerce, trading and support of master plans, including Cambodia’s Digital Society 2021-2035 and Strategic Agricultural Plan 2019-2023.

The social sector budget will also include support of the restoration of tourism and the Siem Reap Tourism Master Plan 2021-2035.

Additional expenditures will include a 5.61 percent of GDP reserve for the government’s political reforms and the organisation of international events or forums. This will also include funds for disaster relief such as natural calamities, food emergencies or other unexpected expenditures.

No information on health expenditure was available.

• Tags: national budget, Prime Minister Hun Sen