Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - World Bank Survey on Public Spending

World Bank Survey on Public Spending

The current economic situation in Cambodia"poses a serious threat to medium-term

[defined as a year] sustainability", according to a recently released World

Bank report.

Cambodia remains one of the poorest countries in Asia, according to the report, with

per capita income less than $300, and widespread poverty with 36 percent of the total

population living below the poverty line.

Revenue collection is one of the largest problems facing the government. The World

Bank says that lost revenues in 1996 and l997 amounted to 5-6 percent of Gross Domestic

Product each year, which was about two-thirds of actual budget revenues.

In 1997, it is estimated that the government lost more than $60 million from illegal

logging alone.

The report, entitled "Cambodia Public Expenditure Review: Enhancing Effectiveness

of Public Expenditures", says that in order to make a transition toward sustainable

development with significant poverty reduction and broad-based economic growth, "Cambodia

must substantially upgrade the current weak physical infrastructure and the poor

quality of human resources."

The World Bank says that the government "must decisively implement" a series

of recommendations which include: fully implementing the Law on Taxation, implementing

VAT for the 800 largest taxpayers, removing incentives granted to resource and resource

processing firms, taking "emergency measures" to arrest the deteriorating

situation in the forestry sector by granting no new concessions, and freezing all

new investment in wood processing and establishing mechanisms to prevent illegal

logging and log exports.

The report was based of a World Bank mission to Cambodia in March 1998 and was discussed

with the government in December.

0

Comments

Please, login or register to post a comment

Latest Video

Phnom Penh eats: Homegrown veggies at Bayon Beoung Snor

​Nestled along National Road 1, Bayon Beoung Snor is a farm-cum-restaurant. The team grows their own vegetables, which they then use to whip up traditional Khmer food.

Bill Clough reflects on The Phnom Penh Post's 25 year history

The Post's publisher Bill Clough, under whose leadership the publication went from a fortnightly to a daily one, discusses his investment in Cambodia, his vision for the paper in an increasingly digital age,

People search for their names on the voter lists at a polling station in Kampong Cham’s Veal Vong commune earlier this month.

Four years ago, when the opposition snatched Kampong Cham away from the ruling party in 2013 national elections, it hinted at a deeper shift taking

Comfrel Executive Director Koul Panha speaks to the press at a meeting yesterday in Phnom Penh.

As the National Election Committee launched into the recount proc