The finance ministry headquarters in Phnom Penh. Heng Chivoan
The government’s national revenue collection in the first 10 months of 2023 reached nearly $4.9 billion, equating to almost 78% of the target set by the 2023 Law on Financial Management, while total expenditures stood at over $6.3 billion, as reported by the Ministry of Economy and Finance.
The ministry’s report detailed that from January to October 2023, total income amounted to $4.897 billion, representing 77.85% of the budget target. The figure marks a 2.02% decrease compared to the same period in 2022.
Fiscal revenue constituted $4.408 billion for the period, or 77.45% of the target, showing a 4.2% decline from 2022 year-on-year. In contrast, non-fiscal revenue totalled $482.56 million, or 92.72% of the goal, an increase of 24.08%.
The report highlighted that, considering revenue performance trends over recent years and the recovery of the country’s socio-economic activities, the collection is on track to meet the objectives outlined in the budget law.
The report indicated that total spending in the first 1- months of 2023 amounted to $6.33 billion, or 74.95% of the budget target, a 19.49% increase from the same period last year. Capital expenditure was $2.169 billion, rising by 12.32% and current expenditure reached $4.159 billion, up by 23.6%.
The ministry emphasised the ongoing principle of restricting unnecessary spending and prioritising essential sectors.
“The government continues to manage and utilise the national consolidation funds with utmost care, ensuring adequate resources are available for timely implementation of the state budget,” the ministry stated.
The report noted that total foreign financing implementation at the national level reached approximately $1.210 billion, equating to 77.71% of the budget target. National gross domestic financing amounted to $1.019 billion, or 54.29% of the goal, alongside a total government deposit of about $11.42 million.
Hong Vannak, an economist at the Royal Academy of Cambodia, told The Post on December 7 that despite global and regional economic challenges,the country’s national revenue and expenditure performance remains robust.
He believes this demonstrates the government’s effective management of funds to sustain social stability and development. He noted that the government’s income collection has progressively increased, narrowing the revenue-expenditure gap.
“Continued improvement in revenue collection is playing a crucial role in aiding the government’s ambition to become an upper-middle-income country by 2030 and a high-income one by 2050,” he stated.
Challenges in the external environment and a downturn in the real estate sector led the International Monetary Fund (IMF) to revise the country’s economic growth forecast for 2023 down to 5.3%, from their April prediction of 5.8%.
Davide Furceri, IMF’s mission chief to Cambodia, stated at a recent press conference that the country’s economy is steadily recuperating from the impacts of Covid-19, despite facing internal and external forces.
The economy grew by 5.2% in 2022, up from 3% the previous year, driven by strong manufacturing and a rebound in the services sector, according to the IMF. The organisation projects the country’s economy to grow by 6.0% in 2024.
According to the General Department of Customs and Excise (GDCE), between January and October 2023, the Kingdom’s exports amounted to $18.59 billion, a marginal 0.2% increase from $18.55 billion in the corresponding period of 2022. Imports totalled $20.07 billion, a 6% decrease from $21.36 billion.
