Cambodia’s Central Government Revenue Reaches $4.6B YTD, Budget Target in Sight
Cambodia’s budgetary central government (BCG) revenue has reached over $4.6 billion in the first nine months of 2023, representing nearly 73% of the year’s financial target. While this marks a slight decline compared to the previous year, the Ministry of Economy and Finance remains optimistic.
During January to September, the government collected around $4.64 billion, equivalent to 72.8% of the yearly budget law (BL). Tax revenue accounted for $3.95 billion, grants and other income contributed $245.17 million and $448.57 million, respectively.
Overall, there was a 3% decrease in revenue performance, with taxes and grants declining by 3.72% and 21.01%, while other income saw a 19.83% increase.
Government expenditures reached $5.06 billion, constituting 63.31% of the year’s BL. Operational expenses amounted to $3.68 billion, and the net acquisition of non-financial assets stood at $1.27 billion.
Expenditure rose by 14.03% from the previous year, driven by a 15.57% increase in expenses and a significant 55.4% surge in net acquisition of non-financial assets.
Despite a deficit of $58.61 million, equivalent to 25.84% of the forecasted annual budget deficit, the Ministry of Economy and Finance considers it manageable. The deficit was primarily caused by increased debt and the acquisition of non-financial assets.
Economist Hong Vanak emphasized the importance of government revenue for economic growth and development. While global crises have affected certain export sectors, he believes the slight decline in revenue will not significantly impact the government’s spending plans.
The International Monetary Fund (IMF) revised Cambodia’s economic growth forecast for 2023 to 5.3%, considering external pressures and a slowdown in the real estate market. However, the IMF expects growth to reach 6.0% by 2024.
Overall, Cambodia’s government revenue remains steady, and with measures to address economic challenges, the country strives for continued development and growth.
