Compass Real Estate > Cambodia Real Estate Information > Others > Government plans the budget of US$9,487 million to support the sustainability of government institutions by 2025

Government plans the budget of US$9,487 million to support the sustainability of government institutions by 2025

2024-11-01
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Summary:In 2025, the royal government plans to spend a total of 37,950,385 million Riels (about US$9,487 million) to support the sustainability of state institutions operations.

According to the Draft Law on Financial Management 2025, which has 6 chapters and 15 articles, in 2025, the royal government plans to spend a total of 37,950,385 million riels (about US$9,487 million) to support the sustainability of state institutions operations; in particular, to achieve the maximum of the five strategic goals set out in the Pentagon Strategy—the first phase of the 7th legislature government.

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The budget of 37,950,385 million riels that the government plans to spend is 18.14% of gross domestic product (GDP), of which current expenditure is 26,054,019 million riels and capital expenditure is 11,896,366 million riels.

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Cambodia's economy in 2025 is projected to grow at 6.3%, which makes the current value of GDP around 209,163 billion riels, equivalent to about US$51,398 million. The per capita income is expected to reach US$2,924.

Expectations of 6.3% growth are supported by key economic sectors, including the industrial sector, which will grow by 8.6%, the service sector will grow by 5.6%, and the agriculture sector will grow by 1.1%. Inflation is projected to be around 2.5%, with the social sector still the top priority.

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The 2025 budget plan will serve as an effective policy tool for the Royal Government to maintain, protect, and further strengthen the great achievements that Cambodia has achieved in the past, as well as to continue to lay the foundation for the further development of Cambodia. The budget expenditure priority for 2025 is to meet the priorities and needs of the ministries and institutions, especially the linking of the daily work to the policy objectives of the ministries and institutions that will contribute to the implementation of the overall priority policies of the Royal Government, including: institutional capacity building, human resource development, physical infrastructure development and repair, maintaining physical infrastructure, and economic diversification.

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In particular, the creation of value added in the existing economic sector and related sub-sectors, the promotion of investment in agriculture, the preparation for the adoption of new technologies in the era of digital economy, the expansion of scope and the improvement of the quality of all types of public services; in particular, education, health, justice, and other essential basic services, and governance reform and institutional capacity building at both the national and sub-national levels, as well as the implementation of social protection systems based on the principles of efficiency, society equity, sustainability, and budget sustainability.

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