Phnom Penh, Cambodia – The Royal Government of Cambodia has announced plans to allocate approximately $10.1 billion in national spending for 2026, representing a 7.8% increase over the 2025 budget.
The decision was approved during a Cabinet meeting held on October 24, chaired by Prime Minister Hun Manet, according to a press release outlining the draft Law on Financial Management for 2026.
The draft law comprises six chapters and fifteen articles, emphasizing key national priorities such as strengthening sovereignty and territorial integrity, ensuring the smooth operation of state institutions, advancing policy goals, and driving forward major reforms.
The 2026 budget will focus on continuing the six priority policy programs, five core reform measures, and five main priorities identified in phase one of the seventh-mandate government’s Pentagonal Strategy — a comprehensive framework guiding Cambodia’s development trajectory in both domestic and international contexts.
According to the government’s projections, the total planned expenditure of 40,913 billion riel (around $10.1 billion) will account for 18.85% of the country’s gross domestic product (GDP). The economy is forecast to grow by about 5.0% in 2026, following an estimated 5.2% expansion in 2025, while GDP per capita is expected to rise to $3,020 from $2,858 in 2025.
Growth is projected to be driven by three major sectors — industry, services, and agriculture — with continued contributions from the fisheries and livestock sub-sectors. The average annual inflation rate is projected to stay around 2.8%.
In comparison, the National Budget Law 2025 allocated 37,951 billion riel (18.14% of GDP), while previous years recorded 37,110 billion riel in 2024 (25.96% of GDP), 39,206 billion riel in 2023 (29.87% of GDP), 34,708 billion riel in 2022 (27.95% of GDP), and 32,009 billion riel in 2021 (27.14% of GDP).
The proposed 2026 financial plan underscores the government’s continued commitment to reform, stability, and sustainable economic growth as Cambodia enters a new phase of national development.
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